Moral Hazard in Capital Market: A Comprehensive Study

Title

Moral Hazard in Capital Market: A Comprehensive Study

Creator

Thapa, Rahul; Maniyar, Vaishnavi; Sistla, Pranathi; Rawlin, Rajveer S.

Description

Moral hazard was originally a term used only in the field of insurance, but it has since entered capital markets, changing incentives and increasing systemic risk. This literature review confronts how information asymmetries, governance risk, and implicit guarantees create opportunism for managers, investors, and institutions. A systematic review of the existing literature that is reflected in 51 peer- reviewed articles reveals four themes: amplification of risk, misalignment of incentives, ethical governance, and institutional design. The review also identifies three major gaps: the neglect of the investor side, lack of consideration for the Corporate Social Responsibility (CSR) framework, and lack of methodological innovation. This paper calls on researchers from various disciplines to examine moral hazard to better develop the literature and construct a more robust market. 2026 by IGI Global Scientific Publishing.

Source

Investigating Moral Capital in Value Creation;pp.143-169

Date

01-01-2026

Publisher

IGI Global

Coverage

Thapa R., Christ University, India; Maniyar V., Christ University, India; Sistla P., Christ University, Bangalore, India; Rawlin R.S., Department of Business & Management, CHRIST University, India

Rights

Restricted Access; Hardcopy may be available in the library

Relation

ISBN: 979-833736045-4; 979-833736043-0;

Format

online

Language

English

Type

Book chapter

Identifier

https://doi.org/10.4018/979-8-3373-6043-0.ch05

https://www.scopus.com/pages/publications/105032362697?origin=resultslist