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Ownership and Asymmetric Information Problems in the Corporate Loan Market: Evidence from a Heteroskedastic Regression
Ownership and Asymmetric Information Problems in the Corporate Loan Market: Evidence from a Heteroskedastic Regression
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In credit markets, asymmetric information problems arise when borrowers have private information about their creditworthiness that is not observable by lenders. If these informational asymmetries do not negatively affect lenders' profitability, then they are irrelevant to lenders.