Efficiency in the Market for Financial Advisory Services to Businesses
Journal Title: Visnyk of the National Bank of Ukraine - Year 2018, Vol 0, Issue 246
Abstract
This paper considers whether company decisions on their advisors promote efficiency in the market for business advisory services. We employ a fixed effects measure of advisor quality and find that no fine-grained measure of performance seems to influence separation and hiring decisions. We do find that, under a rule of thumb measure of advisor performance, firms are more likely to ditch “bad” and “neutral” advisors than “good” ones. Unfortunately, using the same rule of thumb measure, firms appear no more likely to hire “good” quality new advisors than could be expected by chance. As a result, in less than 10% of all separations the new hire yields an improvement in advisor quality. In short, there is a substantial amount of movement in the market with no benefit.
Authors and Affiliations
Shaun Hargreaves-Heap, Oleksandr Talavera
Keywords
Related Articles
- EP ID EP508585
- DOI 10.26531/vnbu2018.246.034
- Views 155
- Downloads 0
Ukrainian Banks’ Business Models Clustering: Application of Kohonen Neural Networks
Abstract This paper clusters and identifies six distinct bank business models using Kohonen Self-Organising Maps. We show how these models transform over the crisis and conclude that some of them are more prone to defau...
Quasi-Competitiveness of the Audit Services Market in Ukraine: The Aspect of European Integration
In the context of European integration processes and transformations in the banking sector, a study of the concentration of the audit services market in Ukraine, one of the most regulated markets, was held. The authors a...
Communicative Efficiency in Ukraine’s Banking System: Evidence From Independent Auditor Reports
This study, based on the quantitative content analysis, examines communicative efficiency in the Ukrainian banking system, i.e. shows how the tone and the readability of independent auditor reports are associated with a...
National Bank of Ukraine Econometric Model for the Assessment of Banks’ Credit Risk and Support Vector Machine Alternative
Econometric models of credit scoring started with the introduction of Altman’s simple z-model in 1968, but since then these models have become more and more sophisticated, some even use Artificial Neural Networks (ANN) a...
Inflation Targeting Experience: Lessons for Ukraine
In the past three decades, many advanced market and emerging market economies have modernized their monetary policy frameworks. We research the experience of these economies for lessons relevant to the monetary policy in...