| Item Type |
Monograph
(Working Paper)
|
| Abstract |
This paper investigates the impact of investor information on financial innovation. We identify specific channels through which issuers of financially engineered products exploit retail investors by using their privileged access to information. Our results imply that imperfect investor information regarding volatility and dividends is crucial to explain the pricing and design of financially engineered products. We confirm our conjecture by exploiting a discontinuity in issuers' informational advantage. The insights are of systemic importance because they suggest that product issuers' behavior in the financial innovation market aggravates investor information problems of the financial system. |
| Authors |
Ammann, Manuel; Arnold, Marc & Straumann, Simon |
| Language |
English |
| Keywords |
Structured Products, Investor Information, Financial Innovation |
| Subjects |
finance |
| HSG Classification |
contribution to scientific community |
| HSG Profile Area |
None |
| Date |
10 March 2017 |
| Publisher |
SoF - HSG |
| Place of Publication |
St. Gallen |
| Series Name |
School of Finance Working Paper Series |
| Number |
2017/04 |
| Number of Pages |
50 |
| Depositing User |
Geraldine Frei-Böbel
|
| Date Deposited |
27 Mar 2017 13:10 |
| Last Modified |
20 Jul 2022 17:30 |
| URI: |
https://www.alexandria.unisg.ch/publications/250638 |
Illuminating the Dark Side of Financial Innovation: The Role of Investor Information
![[img]](http://www.alexandria.unisg.ch/style/images/fileicons/oa_orange.png)
