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Banking Environment, Agency Costs, and Loan Syndication : A Cross-Country Analysis

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  • Christophe J. Godlewski

    () (Laboratoire de Recherche en Gestion et Economie, Université Louis Pasteur)

Abstract

Bank loan syndicate structure can be considered as an organizational response to agency problems stemming from the syndication process. The banking environment also influences the syndication process. We investigate how syndicate structure is influenced by the characteristics of the banking environment, such as banking market structure, financial development, banking regulation and supervision, and legal risk. The results of a cross-country analysis performed on a sample of 15,586 syndicated loan facilities from 24 countries over a period of 15 years confirm that syndicate structure is influenced by banking environments consistent with agency costs minimization and efficient re-contracting objectives.

Suggested Citation

  • Christophe J. Godlewski, 2008. "Banking Environment, Agency Costs, and Loan Syndication : A Cross-Country Analysis," Working Papers of LaRGE Research Center 2008-08, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
  • Handle: RePEc:lar:wpaper:2008-08
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    File URL: http://ifs.u-strasbg.fr/large/publications/2008/2008-08.pdf
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    References listed on IDEAS

    as
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    3. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
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    More about this item

    Keywords

    Banking environment; Agency costs; Loan syndication; Syndicate structure.;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • F30 - International Economics - - International Finance - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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