Eres : Digital Library : Works

Paper eres2007_169:
Financial Development and Property Valuation

id eres2007_169
authors Shahid Ebrahim, M.
year 2007
title Financial Development and Property Valuation
source 14th Annual European Real Estate Society Conference in London, UK
summary This paper models the agency theoretic perspective of risk averse investors and financiers (under symmetric information) to demonstrate the increase in pareto-efficiency as financial architecture advances from a bank to capital markets. This is attributed to the reduction in agency costs leading to an increase in the value of property. Our results predict that an optimal financial system will configure itself skewed towards capital markets irrespective of the source of its origination (from specialized banking system or universal banking system). We also rationalize the co-existence of banks and capital markets in a well-developed financial system.
series ERES:conference
discussion No discussions. Post discussion ...
session Session B6: Risk Management & Investment Dynamics
last changed 2009/11/19 09:01
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