IDEAS home Printed from https://ideas.repec.org/a/taf/apfiec/v20y2010i8p637-648.html
   My bibliography  Save this article

Banking environment and loan syndicate structure: a cross-country analysis

Author

Listed:
  • Christophe Godlewski

Abstract

What is the influence of the banking environment on bank syndicate structure? We provide empirical evidence on this issue by examining the influence of several banking environment characteristics, including the structure of the banking market, financial development, banking regulation and supervision and legal risk, on the structure of bank syndicates. The results of a cross-country analysis performed on a sample of 15 586 syndicated loan facilities for borrowers from 24 countries confirm that syndicate structure is influenced by banking environment in a way consistent with minimizing agency costs and efficient re-contracting objectives.

Suggested Citation

  • Christophe Godlewski, 2010. "Banking environment and loan syndicate structure: a cross-country analysis," Applied Financial Economics, Taylor & Francis Journals, vol. 20(8), pages 637-648.
    • Handle: RePEc:taf:apfiec:v:20:y:2010:i:8:p:637-648
    DOI: 10.1080/09603100903459899
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09603100903459899
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09603100903459899?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Berger, Allen N. & DeYoung, Robert, 1997. "Problem loans and cost efficiency in commercial banks," Journal of Banking & Finance, Elsevier, vol. 21(6), pages 849-870, June.
    2. Besanko, David & Thakor, Anjan V, 1987. "Collateral and Rationing: Sorting Equilibria in Monopolistic and Competitive Credit Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(3), pages 671-689, October.
    3. repec:bla:jfinan:v:43:y:1988:i:2:p:375-96 is not listed on IDEAS
    4. Esty, Benjamin C. & Megginson, William L., 2003. "Creditor Rights, Enforcement, and Debt Ownership Structure: Evidence from the Global Syndicated Loan Market," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 38(1), pages 37-60, March.
    5. Viral V. Acharya & Iftekhar Hasan & Anthony Saunders, 2006. "Should Banks Be Diversified? Evidence from Individual Bank Loan Portfolios," The Journal of Business, University of Chicago Press, vol. 79(3), pages 1355-1412, May.
    6. Godlewski, Christophe J. & Weill, Laurent, 2008. "Syndicated loans in emerging markets," Emerging Markets Review, Elsevier, vol. 9(3), pages 206-219, September.
    7. Jun Qian & Philip E. Strahan, 2007. "How Laws and Institutions Shape Financial Contracts: The Case of Bank Loans," Journal of Finance, American Finance Association, vol. 62(6), pages 2803-2834, December.
    8. Linda Allen & Aron Gottesman, 2006. "The Informational Efficiency of the Equity Market As Compared to the Syndicated Bank Loan Market," Journal of Financial Services Research, Springer;Western Finance Association, vol. 30(1), pages 5-42, August.
    9. Bolton, Patrick & Scharfstein, David S, 1996. "Optimal Debt Structure and the Number of Creditors," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 1-25, February.
    10. Amir Sufi, 2007. "Information Asymmetry and Financing Arrangements: Evidence from Syndicated Loans," Journal of Finance, American Finance Association, vol. 62(2), pages 629-668, April.
    11. Djankov, Simeon & McLiesh, Caralee & Shleifer, Andrei, 2007. "Private credit in 129 countries," Journal of Financial Economics, Elsevier, vol. 84(2), pages 299-329, May.
    12. Rajan, Raghuram & Winton, Andrew, 1995. "Covenants and Collateral as Incentives to Monitor," Journal of Finance, American Finance Association, vol. 50(4), pages 1113-1146, September.
    13. Chan, Yuk-Shee & Kanatas, George, 1985. "Asymmetric Valuations and the Role of Collateral in Loan Agreements," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 17(1), pages 84-95, February.
    14. Demsetz, Rebecca S & Strahan, Philip E, 1997. "Diversification, Size, and Risk at Bank Holding Companies," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 29(3), pages 300-313, August.
    15. William Wilhelm & Pegaret Pichler, 2001. "A Theory of the Syndicate: Form Follows Function," Economics Series Working Papers 2001-FE-05, University of Oxford, Department of Economics.
    16. Pegaret Pichler & William Wilhelm, 2001. "A Theory of the Syndicate: Form Follows Function," OFRC Working Papers Series 2001fe05, Oxford Financial Research Centre.
    17. Pascal François & Franck Missonier‐Piera, 2007. "The Agency Structure of Loan Syndicates," The Financial Review, Eastern Finance Association, vol. 42(2), pages 227-245, May.
    18. Natalia Utrero-Gonzalez, 2007. "Banking regulation, information asymmetries and industry growth: new evidence," Applied Financial Economics, Taylor & Francis Journals, vol. 17(1), pages 63-76.
    19. Pegaret Pichler & William Wilhelm, 2001. "A Theory of the Syndicate: Form Follows Function," Journal of Finance, American Finance Association, vol. 56(6), pages 2237-2264, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christophe J. Godlewski & Bulat Sanditov, 2018. "Financial Institutions Network and the Certification Value of Bank Loans," Financial Management, Financial Management Association International, vol. 47(2), pages 253-283, June.
    2. Pessarossi, Pierre & Godlewski, Christophe J. & Weill, Laurent, 2012. "Foreign bank lending and information asymmetries in China: Empirical evidence from the syndicated loan market," Journal of Asian Economics, Elsevier, vol. 23(4), pages 423-433.
    3. Liqiang Chen, 2014. "CEO Risk-taking Incentives and Bank Loan Syndicate Structure," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 41(9-10), pages 1269-1308, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christophe J. GODLEWSKI, 2008. "What Drives the Arrangement Timetable of Bank Loan Syndication ?," Working Papers of LaRGE Research Center 2008-02, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
    2. 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.
    3. Godlewski, Christophe, 2008. "Duration of loan arrangement and syndicate organization," MPRA Paper 10953, University Library of Munich, Germany.
    4. Dorobantu, Sinziana & Müllner, Jakob, 2019. "Debt-side governance and the geography of project finance syndicates," Journal of Corporate Finance, Elsevier, vol. 57(C), pages 161-179.
    5. Godlewski, Christophe J. & Weill, Laurent, 2008. "Syndicated loans in emerging markets," Emerging Markets Review, Elsevier, vol. 9(3), pages 206-219, September.
    6. Christophe Godlewski, 2009. "L’organisation des syndicats bancaires en France:taille, concentration et réputation," Revue Finance Contrôle Stratégie, revues.org, vol. 12(3), pages 37-63, September.
    7. Allen N. Berger & Tanakorn Makaew & Raluca Roman, 2015. "Did bank borrowers benefit from the TARP program : the effects of TARP on loan contract terms," Research Working Paper RWP 15-11, Federal Reserve Bank of Kansas City.
    8. Liqiang Chen, 2014. "CEO Risk-taking Incentives and Bank Loan Syndicate Structure," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 41(9-10), pages 1269-1308, November.
    9. Christophe J. Godlewski, 2019. "Debt Renegotiation and the Design of Financial Contracts," Journal of Financial Services Research, Springer;Western Finance Association, vol. 55(2), pages 191-215, June.
    10. Nishant Dass & Vikram Nanda & Qinghai Wang, 2020. "Within‐syndicate conflicts, loan covenants, and syndicate formation," Financial Management, Financial Management Association International, vol. 49(2), pages 547-583, June.
    11. Godlewski, Christophe J., 2014. "The determinants of multiple bank loan renegotiations in Europe," International Review of Financial Analysis, Elsevier, vol. 34(C), pages 275-286.
    12. Karima Bouaiss & Catherine Refait-Alexandre, 2009. "La structure des crédits syndiqués comme défense contre les problèmes informationnels - Une analyse empirique sur le marché français," Revue Finance Contrôle Stratégie, revues.org, vol. 12(2), pages 35-68, June.
    13. Jian Cai, 2009. "Competition or collaboration? The reciprocity effect in loan syndication," Working Papers (Old Series) 0909, Federal Reserve Bank of Cleveland.
    14. Anagnostopoulou, Seraina C. & Drakos, Konstantinos, 2016. "Bank loan terms and conditions: Is there a macro effect?," Research in International Business and Finance, Elsevier, vol. 37(C), pages 269-282.
    15. Ryan Ball & Robert M. Bushman & Florin P. Vasvari, 2008. "The Debt‐Contracting Value of Accounting Information and Loan Syndicate Structure," Journal of Accounting Research, Wiley Blackwell, vol. 46(2), pages 247-287, May.
    16. Cerutti, Eugenio & Hale, Galina & Minoiu, Camelia, 2015. "Financial crises and the composition of cross-border lending," Journal of International Money and Finance, Elsevier, vol. 52(C), pages 60-81.
    17. McCahery, Joseph & Schwienbacher, Armin, 2010. "Bank reputation in the private debt market," Journal of Corporate Finance, Elsevier, vol. 16(4), pages 498-515, September.
    18. Marie-Hélène Broihanne & Christophe J. GODLEWSKI, 2014. "Building reputation on the syndicated lending market: A participant bank perspective," Working Papers of LaRGE Research Center 2014-02, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
    19. Christophe J. Godlewski & Bulat Sanditov, 2018. "Financial Institutions Network and the Certification Value of Bank Loans," Financial Management, Financial Management Association International, vol. 47(2), pages 253-283, June.
    20. Issam Hallak & Paul Schure, 2011. "Why Larger Lenders Obtain Higher Returns: Evidence from Sovereign Syndicated Loans," Financial Management, Financial Management Association International, vol. 40(2), pages 427-453, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apfiec:v:20:y:2010:i:8:p:637-648. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAFE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.