A Theory of the Syndicate: Form Follows Function
AbstractWe relate the organizational form of investment banking syndicates to moral hazard in team production. Although syndicates are dissolved upon deal completion, membership stability across deals represents a barrier to entry that enables the capture of quasi-rents. This improves incentives for individual bankers to cultivate investor relationships that translate into greater expected proceeds. Reputational concerns of lead bankers amplify the effect. We derive conditions under which restricted entry and designation of a lead banker strictly Pareto dominate, in which case it is also strictly Pareto dominant for the syndicate`s fee to be greater than members` cost of participation.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 2001-FE-05.
Date of creation: 01 Jan 2001
Date of revision:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Marie-Hélène Broihanne & Christophe Godlewski, 2014. "Building reputation on the syndicated lending market: A participant bank perspective," Working Papers of LaRGE Research Center, Laboratoire de Recherche en Gestion et Economie (LaRGE), UniversitÃ© de Strasbourg 2014-02, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
- Vinicius Carrasco & Gustavo Manso, 2006. "Syndication and Robust Collusion in Financial Markets," Textos para discussÃ£o, Department of Economics PUC-Rio (Brazil) 522, Department of Economics PUC-Rio (Brazil).
- Cerutti, Eugenio & Hale, Galina & Minoiu, Camelia, 2014. "Financial crises and the composition of cross-border lending," Working Paper Series, Federal Reserve Bank of San Francisco 2014-20, Federal Reserve Bank of San Francisco.
- Bouaiss, Karima & Refait-Alexandre, Catherine & Alexandre, Hervé, 2011. "Banking relationship and syndicated loans during the last financial crisis," Economics Papers from University Paris Dauphine 123456789/8559, Paris Dauphine University.
- Lakicevic, Milan & Shachmurove, Yochanan & Vulanovic, Milos, 2014.
"Institutional changes of Specified Purpose Acquisition Companies (SPACs),"
The North American Journal of Economics and Finance, Elsevier,
Elsevier, vol. 28(C), pages 149-169.
- Milan Lakicevic & Yochanan Shachmurove & Milos Vulanovic, 2013. "On Mergers, Acquisitions and Liquidation Using Specified Purpose Acquisition Companies (SPACs)," PIER Working Paper Archive 13-013, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Lakicevic, Milan & Shachmurove, Yochanan & Vulanovic, Milos, 2013. "Institutional changes of SPACs," EconStor Preprints 68589, ZBW - German National Library of Economics.
- Lakicevic, Milan & Shachmurove, Yochanan & Vulanovic, Milos, 2013. "Institutional changes of SPACs," MPRA Paper 44181, University Library of Munich, Germany.
- Casamatta, Catherine & Haritchabalet, Carole, 2007.
"Experience, Screening and Syndication in Venture Capital Investments,"
IDEI Working Papers, Institut d'Ãconomie Industrielle (IDEI), Toulouse
443, Institut d'Économie Industrielle (IDEI), Toulouse.
- Casamatta, Catherine & Haritchabalet, Carole, 2007. "Experience, screening and syndication in venture capital investments," Journal of Financial Intermediation, Elsevier, Elsevier, vol. 16(3), pages 368-398, July.
- Shivdasani, Anil & Song, Wei-Ling, 2010. "Breaking Down the Barriers: Competition, Syndicate Structure, and Underwriting Incentives," Working Papers, University of Pennsylvania, Wharton School, Weiss Center 10-25, University of Pennsylvania, Wharton School, Weiss Center.
- Wang, Lanfang & Wang, Susheng, 2012. "Endogenous networks in investment syndication," Journal of Corporate Finance, Elsevier, Elsevier, vol. 18(3), pages 640-663.
- Jian Cai, 2009. "Competition or collaboration? The reciprocity effect in loan syndication," Working Paper 0909, Federal Reserve Bank of Cleveland.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Caroline Wise).
If references are entirely missing, you can add them using this form.