Tranching in the syndicated loan market around the world
| Autor: | Florencio Lopez-de-Silanes, Joseph A. McCahery, Douglas J. Cumming, Armin Schwienbacher |
|---|---|
| Přispěvatelé: | Department of Business Law, Tilburg Law and Economic Center (TILEC) |
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
Creditor Strategy and Management media_common.quotation_subject 05 social sciences Subsidiary Financial system Tranche General Business Management and Accounting Syndicate Syndicated loan Loan Multinational corporation Management of Technology and Innovation Debt 0502 economics and business Economics 050211 marketing Business and International Management 050203 business & management media_common |
| Zdroj: | Journal of International Business Studies (JIBS), 51(1), 95-120. Palgrave Macmillan Ltd. |
| ISSN: | 1478-6990 0047-2506 |
| DOI: | 10.1057/s41267-019-00249-1 |
| Popis: | Loan tranching allows banks to manage risk and facilitate firm financing, whichmay be essential for firms that cannot access investors from stock markets. Weanalyze the determinants and benefits of loan tranching by pooling thetranches of individual loans to create the largest cross-country sample ofsyndicated loans, covering more than 150,000 loans from multinational anddomestic firms. We find that, in addition to market, deal, and borrowercharacteristics, legal and institutional differences impact loan tranching. Strongcreditor protection and efficient debt collection increase the probability oftranching and reduce tranche spreads, ultimately promoting firms’ access todebt. We also find evidence that tranching facilitates the financing ofmultinational firms abroad due to the transfer of legal and culturalinstitutions to foreign subsidiaries. Overall, our results suggest that tranchingplays an important role in reducing a country’s financial development gap andpromotes firms’ access to debt. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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