Adverse selection and moral hazard are different types of information asymmetry in the insurance market, but their empirical evidence cannot be separated using the traditional positive risk-coverage correlation test. In this paper, we use a new method to disentangle adverse selection and moral...

E-commerce and FinTech are currently booming in China. The growing consumer market is accompanied by internet finance, by which consumers can easily borrow money from financial institutions online. As a result, the growing risks of financial institutions are of concern to the government and...

The existence of information asymmetry in automobile insurance market has been studied extensively, yet the previous work mainly focus on different characteristics of insureds, and less frequently on different types of claims. We make use of a unique and complete dataset, which enable us to test...

What drives information asymmetry? What’s the relationship between information asymmetry and competitiveness? Based on a large dataset of China’s automobile insurance market, we find solid evidence of the existence of asymmetric information in China’s automobile insurance market according...

This study examines the relationship between securitization and loan performance using proprietary loan-level data from a Chinese bank. Securitized loans exhibit lower ex-post default rates and prepayment chances compared to the loans retained on the bank's balance sheet, suggesting no adverse...