Financial Intermediaries

Financial intermediaries are a specialized form of information intermediaries that collect, analyze, interpret, and report financial and business information about companies, organizations, and other entities, including states and nations. Financial performance is a widely recognized dimension of corporate reputation. Investors and other financial-oriented stakeholders, at least partially, rely on the perceived superior expertise and access of financial intermediaries, such as Wall Street investment analysts, to interpret the financial performance and fiscal health of companies, organizations, and other entities. As such, the reports, insights, and opinions issued by financial intermediaries influence stakeholder assessments and affect corporate[Page 316] reputations. This entry reviews the major types of financial intermediaries and discusses the uses and varying impacts of information provided by them.