In an article titled: "The Role of Financial Reporting and Transparency in Corporate Governance," published in the Federal Reserve Bank of New York Economic Policy Review, economists examined the "role of financial reporting in resolving agency conflicts among a firm's managers, directors, and capital providers." The economists discussed whether improved financial reporting, along with the improved flow of information from insiders to the bank's board and regulators, results in improved governance. The article highlighted the distinction between formal and informal contracting relationships, and explored how both help to shape a firm's overall governance structure and information environment. The economists also noted that bank governance structures in the financial sector are a reflection of the regulators that monitor their financial reporting. "These may partly substitute for internal monitoring mechanisms, and they may evolve to serve the interests of shareholders and other stakeholders."

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