Financial Law and Risk Control
Financial Intermediation and Delegated Monitoring
Douglas W. Diamond
- Year
- 1984
- Venue
- Review of Economic Studies
- Level
- Advanced
Summary
Develops a theory of financial intermediaries as delegated monitors. The paper explains how diversification can reduce the cost of providing monitoring incentives and connects debt contracts, bankruptcy costs, portfolio structure, and bank capital structure to information problems in lending.
Citation
Douglas W. Diamond. "Financial Intermediation and Delegated Monitoring." Review of Economic Studies, 1984.
DOI: 10.2307/2297430
BibTeX
@article{Diamond1984Financial,
title = {Financial Intermediation and Delegated Monitoring},
author = {Douglas W. Diamond},
year = {1984},
journal = {Review of Economic Studies},
doi = {10.2307/2297430},
url = {https://doi.org/10.2307/2297430}
}