13 Pages Posted: 12 Feb 2001
Date Written: February 2001
Major technological, regulatory, and institutional changes have made finance more widely available in recent years. The ability of financial institutions to price a variety of exotic instruments, and to assess and spread risks, has increased. More data on potential borrowers is now available, and it is also more timely. Improvements in accounting disclosure have resulted in greater borrower transparency. Deregulation has resulted in greater competition and better prices in financial markets. Finally, regulatory barriers protecting the turf of different kinds of financial institutions have come down, resulting in the emergence of new institutional forms.
JEL Classification: G10, G18, G20, M41, M45, L10
Suggested Citation: Suggested Citation
Rajan, Raghuram G. and Zingales, Luigi, The Influence of the Financial Revolution on the Nature of Firms (February 2001). CRSP Working Paper No. 525. Available at SSRN: https://ssrn.com/abstract=259537 or http://dx.doi.org/10.2139/ssrn.259537