Financial Institutions Network and the Certification Value of Bank Loans
| Autor: | Christophe J. Godlewski, Bulat Sanditov |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
040101 forestry
Finance Economics and Econometrics 050208 finance business.industry Cross-collateralization 05 social sciences Financial intermediary Financial market Financial system 04 agricultural and veterinary sciences Certification Syndicate Loan Accounting 0502 economics and business Financial crisis 0401 agriculture forestry and fisheries Stock market business |
| Zdroj: | Financial Management. 47:253-283 |
| ISSN: | 0046-3892 |
| DOI: | 10.1111/fima.12197 |
| Popis: | Social networks and reputation are believed to play important roles in mitigating informational frictions related to financial intermediation, in particular bank lending. We investigate the effect of the network and reputation of financial institutions on the certification value of bank loans using data on syndicated loans to European companies. We find that the presence of more central and reputable leaders in a syndicate substantially increases the stock market's reaction to loan announcements. This certification value is reinforced when informational frictions are more important, but vanishes in case of severe disruptions in the functioning of financial markets, such as during the financial crisis of 2008. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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