Godlewski, Christophe (2008): Duration of loan arrangement and syndicate organization.
Preview |
PDF
MPRA_paper_10953.pdf Download (192kB) | Preview |
Abstract
What is the influence of syndicate organization on the duration of loan arrangement? I answer this question using the survival analysis methodology on a sample of loans from 59 countries over the 1992-2006 period. I find that syndicate size, concentration, reputation, and national diversity clearly matters for the duration of loan arrangement and therefore for borrower satisfaction regarding the speed of obtaining the necessary funding. A syndicate organization adapted to specific agency problems of syndication, with numerous, reputable, and experienced arrangers retaining a larger portion of the loan reduces the duration. The latter is also shorter when the lenders diversity in terms of nationality is weaker.
Item Type: | MPRA Paper |
---|---|
Original Title: | Duration of loan arrangement and syndicate organization |
Language: | English |
Keywords: | Syndicated loan, syndication process, duration of loan arrangement, agency costs, reputation, experience, nationality, survival analysis |
Subjects: | F - International Economics > F3 - International Finance > F30 - General C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics > C41 - Duration Analysis ; Optimal Timing Strategies G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages |
Item ID: | 10953 |
Depositing User: | Christophe J. GODLEWSKI |
Date Deposited: | 08 Oct 2008 10:49 |
Last Modified: | 30 Sep 2019 21:00 |
References: | Ackert, L., Huang, R., Ramirez, G., 2007. Information opacity, credit risk, and the design of loan contracts for private firms. Financial Markets, Institutions and Instruments 16, 221–242. Altunbas, Y., Gadanecz, B., Kara, A., 2005. Key factors affecting internationally active banks’ decisions to participate in loan syndications. Applied Economic Letters 12, 249–253. Bolton, P., Scharfstein, D., 1996. Optimal debt structure and the number of creditors. Journal of Political Economy 104, 1–25. Carey, M., Post, M., Sharpe, S., 1998. Does corporate lending by banks and finance companies differ? evidence on specialization in private debt contracting. Journal of Finance 53, 845–878. Champagne, C., Kryzanowski, L., 2007. Are current syndicated loan alliances related to past alliances? Journal of Banking and Finance 31, 3145–3161. Coleman, A., Esho, N., Sharpe, I., 2002. Do bank characteristics influence loan contract terms ? Working paper. Cox, D., 1972. Regression models and life tables. Journal of the Royal Statistical Society 24, 187–201. Cox, D., 1975. Partial likelihood. Biometrika 62, 269–276. Dennis, S., Mullineaux, D., 2000. Syndicated loans. Journal of Financial Intermediation 9, 404–426. Djankov, S., McLiesh, C., Shleifer, A., 2007. Private credit in 129 countries. Journal of Financial Economics 84, 299–329. Eisenhardt, K. M., 1989. Making fast strategic decisions in high-velocity environments. The Academy of Management Journal 32, 543–576. Esty, B., 2001. Structuring loan syndicates: A case study of the hong kong disneyland project loan. Journal of Applied Corporate Finance 14, 80–95. Esty, B., Megginson, W., 2003. Creditor rights, enforcement, and debt ownership structure: Evidence from the global syndicated loan market. Journal of Financial and Quantitative Analysis 38, 37–59. Focarelli, D., Pozzolo, A., Casolaro, L., 2008. The pricing effect of certification on syndicated loans. Journal of Monetary Economics 55, 335–349. Fran¸cois, P., Missionier-Piera, F., 2007. The agency structure of loan syndicates. The Financial Review 42, 227–245. Gatev, E., Strahan, P., 2008. Liquidity risk and syndicate structure. Working Paper 13802, National Bureau of Economic Research. Gatti, S., Kleimeier, S., Megginson, W., Steffanoni, A., 2008. Arranger certification in project finance. Working paper. Godlewski, C., Weill, L., 2008. Syndicated loans in emerging markets. Emerging Markets Review 9, 206–219. Goplan, R., Nanda, V., Yerramilli, V., 2007. Lead arranger reputation and the loan syndication market. Working paper. Hao, L., 2004. Bank effects and the determinants of loan yield spreads. Working paper. Harjoto, M., Mullineaux, D., Yi, H.-C., 2006. A comparison of syndicated loan pricing at investment and commercial banks. Financial Management 35, 49–70. Harrell, F., 2001. Regression Modeling Strategies With Applications to Linear Models, Logistic Regression, and Survival Analysis. Springer Series in Statistics. Ivashina, V., 2007. Asymmetric information effects on syndicated loan rates. Working paper, Harvard Business School. Jones, J., Lang, W. W., Nigro, P. J., 2005. Agent behavior in bank loan syndications. Journal of Financial Research 28, 385–402. Kiefer, N., 1988. Econometric duration data and hazard functions. Journal of Economic Literature 25, 646–679. LaPorta, R., de Silanes, F. L., Shleifer, A., 1998. Law and finance. Journal of Political Economy 106, 1113–1155. LaPorta, R., de Silanes, F. L., Shleifer, A., Vishny, R., 1997. Legal determinants of external finance. Journal of Finance 52, 1130–1150. Lee, S., Mullineaux, D., 2004. Monitoring, financial distress, and the structure of commercial lending syndicates. Financial Management 33, 107–130. Panyagometh, K., Roberts, G., 2008. Loan syndicate structure: Evidence from ex post risk. Working paper. Pichler, P., Wilhelm, W., 2001. A theory of the syndicate: Form follows function. Journal of Finance 56, 2237–2264. Preece, D., Mullineaux, D., 1996. Monitoring, loan renegotiability, and firm value: The role of lending syndicates. Journal of Banking and Finance 20, 577–593. Ross, D., 2007. The “dominant bank effect”: How high lender reputation affects the information content and terms of bank loans’. Working paper. Sufi, A., 2007. Information asymmetry and financing arrangements: Evidence from syndicated loans. Journal of Finance 62, 629–668. Talaulicar, T., Grundei, J., v.Werder, A., 2005. Strategic decision making in start-ups: the effect of top management team organization and processes on speed and comprehensiveness. Journal of Business Venturing 20, 519– 541. Taylor, A., Sansone, A., 2007. The Handbook of Loan Syndications and Trading. McGraw-Hill. Tykvova, T., Schertler, A., 2008. Syndication to overcome transaction costs of cross-border investments? evidence from a worldwide private equity deals’ dataset. Working paper, ZEW Mannheim. Weidner, D., January 2000. Syndicated lending closes out 90s on a tear. The American Banker. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/10953 |