Recent developments in liability for nondisclosure of capital market information

Kalss, Susanne

doi:10.1016/j.irle.2007.04.005

Cited by 3 publications

(3 citation statements)

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“…Asymmetric information may cause the less informed market participants to conclude contracts to their own detriment (Kalss, 2007). With regards to the provision of financial services, Malherbe and Morojele (2001) reported that asymmetric information can be so extreme that the client knows virtually nothing of the product being offered, the nature of the organization offering it and the intermediary advising the client to buy it.…”

Section: Asymmetric Information and Intermediariesmentioning

confidence: 99%

Measuring consumer knowledge of life insurance products in South Africa

Ramchander

2016

SAJBM

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The financial services industry is characterized by product suppliers having more information than consumers regarding product features and services. The purpose of this article is to explore this information asymmetry with particular reference to the life insurance industry. Financial advisors, acting as intermediaries, are charged with the task of resolving this asymmetry through mandatory disclosures demanded by regulation. In South Africa, the Financial Services Board (FSB) monitors, regulates and supervises the financial services industry through the Financial Advisory and Intermediary Services Act of 2002 and The Code of Conduct for Financial Advisors. This paper distinguishes financial products from other products and highlights the need for disclosures regarding product features, by financial advisors. Using multistage sampling a national survey was conducted to establish whether consumers are knowledgeable of the features of basic insurance products. The findings were that consumers have a low to very low level of understanding of the features of basic insurance products. The study makes an important contribution to insurers’ understanding of consumers’ knowledge regarding the features of basic life insurance products. Furthermore, the findings would also contribute to insurersunderstanding the level to which intermediaries resolve the information asymmetry between product suppliers and consumers.

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Section: Asymmetric Information and Intermediariesmentioning

confidence: 99%

Measuring consumer knowledge of life insurance products in South Africa

Ramchander

2016

SAJBM

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“…First movers will try to benefit from increased or maintained reputation in the capital market (as well as societal image effects). However, being first movers will have costs, i.e., direct, proprietary and liability costs (Healy and Palepu, 2001;Kalss, 2007).…”

Section: Differentiation In a Harmonisation Environmentmentioning

confidence: 99%

“…As regards the importance of professional background, one exception is our finding of a significant relationship between companies with board members with accounting/finance background and the choice of a high level of corporate governance reporting. This could be interpreted as support for influence of board members predisposed toward high quality reporting based on expertise in assessing capital market risks and rewards (e.g., Healy and Palepu, 2001;Kalss, 2007).…”

Section: Hypotheses Testsmentioning

confidence: 99%

Board Competency Explanations for Differentiation in a Harmonisation Environment

Holm

Schøler

2012

RES

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Some companies decide to differentiate from others even though the regulatory establishments such as the European Union and IASB constantly strive to encourage comparability and the need for harmonisation of reporting behaviour and governance structures. Under the harmonization regime, decisions to differentiate become strategic in nature and are placed in the hands of the (supervisory) board. We examine the influence of the competency and background of supervisory board members on decisions to differentiate in reporting and governance structure. We use data from 100 listed Danish companies. We find that early IFRS implementation is related to board competency in the form of international experience, while corporate governance disclosure level is related to internationalisation, professional background in accounting/finance and gender diversity. We also find that differentiation through voluntary implementation of audit committees is related to international experience, while board decisions to abandon the Danish joint audit regime are unrelated to competency measures.

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Civil Liability as an Enforcement Tool of Securities Underwriter Gatekeeping Duty

Skripova¹

2012

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Recent developments in liability for nondisclosure of capital market information

Cited by 3 publications

References 0 publications

Measuring consumer knowledge of life insurance products in South Africa

Measuring consumer knowledge of life insurance products in South Africa

Board Competency Explanations for Differentiation in a Harmonisation Environment

Civil Liability as an Enforcement Tool of Securities Underwriter Gatekeeping Duty

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