The Role of Financial Intermediaries in Capital Market

Mahdi Salehi
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Mahdi Salehi: Zanjan University, Zanjan, Iran

Zagreb International Review of Economics and Business, 2008, vol. 11, issue 1, 97-109

Abstract: In the recent years, a growing of theoretical and empirical literature has developed a paradigm in which the extent of financial intermediation and the rate of economic growth are endogenously determined. Financial intermediaries emerge to reduce the information asymmetries, extending corporate control, risk management and mobilizing saving. In this paper the authors came to conclusion that although the Iranian financial intermediaries play very important role in economic, it is not much sufficient. It should be also provided foreign financial intermediaries for practicing in Iranian business sectors.

Date: 2008
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