Open AccessThe Successful Experience on Facing Information Asymmetry?—Cash Cards in Taiwan
Author(s) -
Shih-Chi Shen,
Wu-Hua Chang,
Yu-Ting Shih,
Chih-Hsiung Chang
Publication year - 2022
Publication title -
international business and economics studies
Language(s) - English
Resource type - Journals
eISSN - 2640-9860
pISSN - 2640-9852
DOI - 10.22158/ibes.v4n2p12
Subject(s) - information asymmetry , adverse selection , moral hazard , business , cash , position (finance) , debt , financial institution , financial system , finance , credit card , economics , market economy , incentive , payment
With the opening of the establishment of new banks in the 1990s, it led to an excessive number of domestic bankers and an excessively small scale, which caused a decline in the quality of financial assets and eventually resulted in adverse selection and moral hazard under information asymmetry in the domestic cash card market, triggering a card debt crisis and serious social problems. This article examined whether the phenomenon of information asymmetry was improved after the competent authority intervened. The results highlighted the important position of the competent authority in financial institution management and made information asymmetry improved eventually.