Godlewski, Christophe (2008): Duration of loan arrangement and syndicate organization.
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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|
|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
|Depositing User:||Christophe J. GODLEWSKI|
|Date Deposited:||08. Oct 2008 10:49|
|Last Modified:||15. Feb 2013 21:49|
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