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

LARGE Working Paper No. 2008-08

34 Pages Posted: 28 Apr 2008

See all articles by Christophe J. Godlewski

Christophe J. Godlewski

University of Strasbourg - Faculty of Law and Business; EM Strasbourg Business School; LaRGE Research Center

Date Written: 2008

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.

Keywords: Banking environment, Agency costs, Loan syndication, Syndicate structure.

JEL Classification: C31, F30, G21, G32.

Suggested Citation

Godlewski, Christophe J., Banking Environment, Agency Costs, and Loan Syndication: A Cross-Country Analysis (2008). LARGE Working Paper No. 2008-08. Available at SSRN: https://ssrn.com/abstract=1126391 or http://dx.doi.org/10.2139/ssrn.1126391

Christophe J. Godlewski (Contact Author)

University of Strasbourg - Faculty of Law and Business ( email )

1 place d'Athènes
Strasbourg, 67000
France

HOME PAGE: http://droit.unistra.fr/

EM Strasbourg Business School ( email )

61 Avenue de la Forêt Noire
Strasbourg, 67000
France

HOME PAGE: http://www.em-strasbourg.eu/

LaRGE Research Center ( email )

1 place d'Athènes
Strasbourg, 67000
France

HOME PAGE: http://droit.unistra.fr/

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