Jump to ContentJump to Main Navigation
Governing the Modern CorporationCapital Markets, Corporate Control, and Economic Performance$
Users without a subscription are not able to see the full content.

Roy C. Smith and Ingo Walter

Print publication date: 2006

Print ISBN-13: 9780195171679

Published to Oxford Scholarship Online: September 2006

DOI: 10.1093/0195171675.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 29 October 2020

Conflicts of Interest

Conflicts of Interest

(p.248) 10 Conflicts of Interest
Governing the Modern Corporation

Roy C. Smith (Contributor Webpage)

Ingo Walter (Contributor Webpage)

Oxford University Press

Potential conflicts of interest are a fact of life among the financial firms that help direct the flow of capital in the modern market-oriented economy. There are essentially two types of conflicts of interest that face intermediary firms: Type 1 conflicts arise between a firm’s own economic interests and the interests of its clients, usually reflected in the misappropriation of economic gains or mispriced transfers of risk; Type 2 conflicts develop between clients, placing the firm in a position of favoring one at the expense of another-bankers who systematically favor corporate clients over investing clients would be an example of this type of conflict. Both types of conflicts can arise either from interprofessional transactions carried out in wholesale financial markets, or in activities involving retail clients.

Keywords:   conflicts of interest, financial intermediaries, financial markets, corporate governance

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .