Working Paper

Financial (Dis-)Information : Evidence from a Multi-Country Audit Study

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Gine, Xavier
dc.contributor.author
Mazer, Rafael Keenan
dc.date.accessioned
2016-08-09T16:58:17Z
dc.date.available
2016-08-09T16:58:17Z
dc.date.issued
2016-07
dc.description.abstract
An audit study was conducted in Ghana, Mexico and Peru to understand the quality of financial information and products offered to low-income customers. Trained auditors visited multiple financial institutions, seeking credit and savings products. Consistent with Gabaix and Laibson (2006), staff only provides information about the cost when asked, disclosing less than a third of the total cost voluntarily. In fact, the cost disclosed voluntarily is uncorrelated with the expensiveness of the product. In addition, clients are rarely offered the cheapest product, most likely because staff is incentivized to offer more expensive and thus more profitable products to the institution. This suggests that clients are not provided enough information to be able to compare among products, and that disclosure and transparency policies may be ineffective because they undermine the commercial interest of financial institutions.
en
dc.identifier
http://documents.worldbank.org/curated/en/2016/07/26581590/financial-dis-information-evidence-multi-country-audit-study
dc.identifier.uri
http://hdl.handle.net/10986/24831
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 7750
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
financial information
dc.subject
audit study
dc.title
Financial (Dis-)Information
en
dc.title.subtitle
Evidence from a Multi-Country Audit Study
en
dc.type
Working Paper
en
okr.date.disclosure
2016-07-19
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/2016/07/26581590/financial-dis-information-evidence-multi-country-audit-study
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-7750
okr.identifier.externaldocumentum
090224b08446de59_1_0
okr.identifier.internaldocumentum
26581590
okr.identifier.report
WPS7750
okr.imported
true
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2016/07/19/090224b08446de59/1_0/Rendered/PDF/Financial00Dis00country0audit0study.pdf
en
okr.region.administrative
Africa
okr.region.administrative
Latin America & Caribbean
okr.region.country
Ghana
okr.region.country
Mexico
okr.region.country
Peru
okr.topic
Finance and Financial Sector Development :: Access to Finance
okr.topic
Finance and Financial Sector Development :: Banks & Banking Reform
okr.topic
Finance and Financial Sector Development :: Financial Literacy
okr.topic
Finance and Financial Sector Development :: Financial Regulation & Supervision
okr.unit
Finance and Private Sector Development Team, Development Research Group

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