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image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Environment and Plan...arrow_drop_down
image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao
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Financial Institutions, Information, and Investing-At-A-Distance

Authors: Gordon L Clark; Ashby H B Monk;

Financial Institutions, Information, and Investing-At-A-Distance

Abstract

Seminal papers on the firm emphasise the benefits of in-sourcing over out-sourcing services from the market. This provides a rationale for the growth of firms, especially in circumstances of market risk and uncertainty concerning the price and quantity of available services. This model is less successful when considering what firms do and where they do it, given their assets and the complementarities between related activities. In this paper we develop a model of financial institutions that is sensitive to the production and consumption of information (internal and external). Links are made between what the institution does and where it does it in relation to the information systems that enable financial institutions to reach beyond what they are able to achieve within their own organisations. This model is particularly relevant to pension funds, insurance companies, endowments, and sovereign wealth funds, many of which face hard-to-realise expectations concerning their investment performance. Making good on these expectations depends on the degree to which they are able to mobilise information at the margin of markets. In the penultimate section of the paper we consider the virtues or otherwise of three particular models of investing-at-a-distance. In conclusion, lessons are drawn for the theory and practice of financial intermediation in the context of increasingly distant investment opportunities.

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    popularity
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    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
23
Top 10%
Top 10%
Top 10%
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