{
 "@context": "https://schema.org",
 "@type": "DefinedTerm",
 "@id": "https://wulfkaal.github.io/entities/financial-innovation",
 "identifier": "kaal:entity:financial-innovation",
 "name": "Financial innovation",
 "termCode": "financial-innovation",
 "inDefinedTermSet": {
  "@id": "https://wulfkaal.github.io/entities/index.json"
 },
 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
 "dateModified": "2026-07-29",
 "canonicalForm": "https://wulfkaal.github.io/entities/financial-innovation.md",
 "sha256": "3dea55bd5ffc079f9d7719bc8f7fa79920f89d683f9a07dc429daef2e8a87aa3",
 "additionalProperty": [
  {
   "@type": "PropertyValue",
   "name": "status",
   "value": "derived"
  },
  {
   "@type": "PropertyValue",
   "name": "claim_count",
   "value": 6
  },
  {
   "@type": "PropertyValue",
   "name": "work_count",
   "value": 4
  },
  {
   "@type": "PropertyValue",
   "name": "year_span",
   "value": [
    "2009",
    "2013"
   ]
  },
  {
   "@type": "PropertyValue",
   "name": "non_current_claims",
   "value": 0
  }
 ],
 "subjectOf": [
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/1428387-029",
   "identifier": "kaal:claim:1428387-029",
   "text": "Limiting the use of hard-to-value assets and complex financial products is very unlikely to have positive effects, because the implicit inhibition of financial innovation would probably limit investors' use of hedging products and interfere with economic expansion.",
   "abstract": "assets. It is very unlikely that limiting the use of financial instruments will have positive effects. The implicit inhibition of financial innovation would probably limit investors' use of hedging products and interfere with economic expansion.232",
   "citation": "Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387",
   "datePublished": "2009",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "where regulators respond to systemic risk by restricting instrument use"
   ],
   "source_pdf_sha256": "6aa3a280dc6750723be2389f3af2aabf3a16c4ce20e49fcdaddd7f2ea95a67aa",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/1558614-030",
   "identifier": "kaal:claim:1558614-030",
   "text": "The more a country leads in financial innovation, the more exposed its disclosure regime is to misrepresentation and fraud, which makes the U.S. regime more vulnerable than Germany's despite being formally stricter.",
   "abstract": "to the extent financial innovation in the United States is ahead of that in Germany, the U.S. disclosure regime may be more vulnerable to misrepresentation and fraud",
   "citation": "Painter and Kaal, Initial Reflections on an Evolving Standard Constraints on Risk Taking by Directors and Officers in (2010). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1558614",
   "datePublished": "2010",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "assumes U.S. financial innovation runs ahead of German financial innovation"
   ],
   "source_pdf_sha256": "e898211630f4116879329d6de8397523dca5b066864147421aa5cbc7429dc83b",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2273857-012",
   "identifier": "kaal:claim:2273857-012",
   "text": "Dynamic elements built into the regulatory structure would allow regulators to continually adapt to new market environments, to financial innovation, and to changes in financial markets that are themselves caused by financial regulation.",
   "abstract": "Dynamic elements in the regulatory structure may allow regulators to continually adapt to new market environments, financial innovation, and to changes in financial markets as a result of financial regulation.",
   "citation": "Wulf A. Kaal, Dynamic Regulation of the Financial Services Industry (2013). SSRN: https://ssrn.com/abstract=2273857",
   "datePublished": "2013",
   "claim_type": "design",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "dynamic elements are incorporated into the regulatory structure"
   ],
   "source_pdf_sha256": "e7cb3dea40593135acc99a9b00690138fe01020514ebf388f5140e1b0e59e82a",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2273857-040",
   "identifier": "kaal:claim:2273857-040",
   "text": "Future financial crises may be inevitable, because globalization, financial innovation, ethical challenges, suboptimal institutional designs, and the bounded rationality of decision makers create conditions that produce crises.",
   "abstract": "Future financial crises may be inevitable. Factors such as globalization, financial innovation, ethical challenges, suboptimal institutional designs, and the bounded rationality of decision makers may create conditions that result in future crises.",
   "citation": "Wulf A. Kaal, Dynamic Regulation of the Financial Services Industry (2013). SSRN: https://ssrn.com/abstract=2273857",
   "datePublished": "2013",
   "claim_type": "predictive",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [],
   "source_pdf_sha256": "e7cb3dea40593135acc99a9b00690138fe01020514ebf388f5140e1b0e59e82a",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2273857-044",
   "identifier": "kaal:claim:2273857-044",
   "text": "The increasing volatility of financial markets combined with financial innovation parallels the pace of technological development in telecommunications, the industry where dynamic regulation has predominantly been applied.",
   "abstract": "The increasing volatility of financial markets in combination with financial innovation shows some parallels to the pace of technological developments in telecommunications markets.",
   "citation": "Wulf A. Kaal, Dynamic Regulation of the Financial Services Industry (2013). SSRN: https://ssrn.com/abstract=2273857",
   "datePublished": "2013",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "comparison drawn between financial and telecommunications markets"
   ],
   "source_pdf_sha256": "e7cb3dea40593135acc99a9b00690138fe01020514ebf388f5140e1b0e59e82a",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/kaal-2013-acomparativeperspectiveo-030",
   "identifier": "kaal:claim:kaal-2013-acomparativeperspectiveo-030",
   "text": "Financial innovation, the globalization of markets, transnationalism, ethical challenges, and the bounded rationality of humans are likely to create and increase future challenges that require additional and more extensive governance adjustments.",
   "abstract": "Financial innovation, the globalization of markets, transnationalism, ethical challenges, and the bounded rationality of humans, among many other factors, are likely to create and perhaps increase future challenges that may require additional and perhaps more extensive governance adjustments.",
   "citation": "Kaal, A Comparative Perspective on the Limitations of the Duty of Oversight – A Comment on Lisa Fairfax (2013)",
   "datePublished": "2013",
   "claim_type": "predictive",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "continuing financial innovation and globalization"
   ],
   "source_pdf_sha256": "ac5c955fe01209c54c78c4575c0b8bf570e5f1259c3f855510697cf51a32e59a",
   "status": "current"
  }
 ],
 "description": "6 claims in the published works of Wulf A. Kaal carry the concept tag 'financial-innovation'. Derived node: a roster, not an adjudicated definition."
}