Information Asymmetry, Financialisation and Financial Access

International Finance.21(3), pp. 297-315 (2018). DOI: 10.1111/infi.12136 (July, 2018).

22 Pages Posted: 29 May 2018 Last revised: 21 Dec 2018

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Nicholas M. Odhiambo

University of South Africa

Date Written: May 18, 2018

Abstract

This study investigates whether information sharing channels that are meant to reduce information asymmetry have led to an increase in financial access. The study employs a Generalised Method of Moments technique using data from 53 African countries during the period from 2004-2011 to examine this linkage. Information sharing channels are theoretically designed to promote the formal financial sector and discourage the informal financial sector. The study uses two information sharing channels: private credit bureaus and public credit registries. The study found that both information sharing channels have a positive and significant impact on financial access. The study also found that public credit registries complement the formal financial sector to promote financial access. The policy implications are discussed.

Keywords: Information Asymmetry; Financialisation; Financial Access; Africa

JEL Classification: G20; G29; L96; O40; O55

Suggested Citation

Asongu, Simplice and Odhiambo, Nicholas M., Information Asymmetry, Financialisation and Financial Access (May 18, 2018). International Finance.21(3), pp. 297-315 (2018). DOI: 10.1111/infi.12136 (July, 2018).. Available at SSRN: https://ssrn.com/abstract=3180506 or http://dx.doi.org/10.2139/ssrn.3180506

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Nicholas M. Odhiambo

University of South Africa

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