2002•Zhongguo guanli kexueRequires access
Interest Conflicts and Incentive Contract Designs Under Information Asymmetry
Qing Tang
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Abstract
The paper firstly investigates and studies the high information asymmetry and high risks empirically which Chinese financial institutions such as banks face in loan contracting.Then the paper studies how interest conflicts are produced under information asymmetry theoretically and professionally respectively, and explores how to design incentive loan contracts to reduce risks in the process of loan contracting to protect bank′s interests and balance all individual party′s interests.