How to Get a Syndicated Loan Fast? The Role of Syndicate Composition and Organization

32 Pages Posted: 29 Jul 2009

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: July 29, 2009

Abstract

We empirically investigate the organizational determinants of the speed of a loan syndication process, with a particular focus on the influence of syndicate composition and organization. Indeed, the major advantage of syndicated lending is the speed with which the required funding can be obtained, while syndication composition and organization are considered as crucial for successful syndication. In a cross-country framework, we find that syndicate composition and organization characteristics clearly matter for the duration of the syndication process and therefore for borrower satisfaction in terms of the speed of obtaining the necessary funding. In particular, a syndicate composition and organization adapted to the specific agency problems of syndication, with numerous, reputable and experienced arrangers holding a larger portion of the loan and with more lenders from the same country as the borrower reduces the duration.

Keywords: Syndicated loan, syndication process, syndicate composition and organization, survival analysis

JEL Classification: C41, F30, G15, G21, G32

Suggested Citation

Godlewski, Christophe J., How to Get a Syndicated Loan Fast? The Role of Syndicate Composition and Organization (July 29, 2009). Available at SSRN: https://ssrn.com/abstract=1440867 or http://dx.doi.org/10.2139/ssrn.1440867

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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