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Information Asymmetry, Financialisation and Financial Access

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  • Simplice Asongu

    () (Yaoundé/Cameroon)

  • Nicholas Odhiambo

    () (Pretoria, South Africa)

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.

Suggested Citation

  • Simplice Asongu & Nicholas Odhiambo, 2018. "Information Asymmetry, Financialisation and Financial Access," AFEA Working Papers 18/001, African Finance and Economic Association (AFEA).
  • Handle: RePEc:afe:wpaper:18/001
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    Cited by:

    1. Simplice A. Asongu, Phd & Joseph Nnanna D.B.A, . "Ict In Reducing Information Asymmmetry For Financial Sector Competition," Journal of Economic and Sustainable Growth 1, Office Of The Chief Economist, Development Bank of Nigeria.

    More about this item

    Keywords

    Information asymmetry; Financialisation; Financial Access; Africa;

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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