Exam 16: Financial System Design

As of the end of 1994, which of the countries in our survey had the largest proportion of stock held by individuals?

Conflict resolution of the stockholder-lender conflict in smaller market-oriented firms is most effectively accomplished by

When the owners of a company hire full-time executives to make the day-to-day decisions, this __________ the __________ problem.

Eastern Europe is an information-__________ environment, which __________ the use of securities markets for large-firm financing.

Asymmetric information problems are less severe the __________ the borrowing firm, since there is __________ publicly available information about those firms.

Banks are better at solving the stockholder-lender conflict than rating agencies when they

As of the end of 1994 which of the countries in our survey had the largest proportion of stock held by the government?

As of the end of 1994 the country in our survey with the smallest stock market in dollar terms was

The German bond market

Of the two conflicts, __________ more severe as the firm becomes smaller.

In banking-oriented systems, handling of the manager-stockholder conflict in large firms is through

When there are many thousands of small stockholders in a company, for each the cost of monitoring manager performance is well __________ the benefits of doing so, which helps __________ the manager-stockholder problem.

Firm ownership in the United Kingdom is largest for

Asymmetric information problems are worse the __________ the borrowing firm, since there is __________ publicly available information about those firms.

As of the end of 1994 which of the countries in our survey had the smallest proportion of stock held by foreigners?

Germany and Japan pay a higher price for raising capital because of

Of the two conflicts, __________ get(s)more severe the larger the firm.

Chapter 16 on "Financial System Design" calls the asymmetric information problem discussed in earlier chapters the __________ conflict.

In 2002, __________ had the largest dollar value of mergers and acquisitions.

The stockholder-manager conflict in a large publicly held firm is manifested in all of the following ways except