The pricing effect of certification on syndicated loans

Journal of Monetary Economics

Volumn 55, Issue 2, 2008, Pages 335-349

  Focarelli, Dario ^a   Pozzolo, Alberto Franco ^b   Casolaro, Luca ^c  

^a SAPIENZA UNIVERSITY OF ROME   (Italy)

^b UNIVERSITY OF MOLISE   (Italy)

^c BANK OF ITALY   (Italy)

Author keywords

Bank lending; Certification; Event studies; Syndicated loans

Indexed keywords

EID: 44249105703     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jmoneco.2007.11.004     Document Type: Article

References (36)

1. Angbazo L.A., Mei J., and Saunders A. Credit spreads in the market for highly leveraged transaction loans. Journal of Banking and Finance 22 (1998) 1249-1282
2. Berger A.N., and Udell G.F. Collateral, loan quality, and bank risk exposure. Journal of Monetary Economics 25 (1990) 21-42
3. Berger A.N., and Udell G.F. Small business and debt finance. In: Zoltan J.A., and Audretsch D.B. (Eds). Handbook of Entrepreneurship (2002), Kluwer Academic Publishers, Dordrecht 299-330
4. Best R., and Zhang H. Alternative information sources and the information content of bank loans. Journal of Finance 48 (1993) 1507-1522
5. BIS, 2006. The international banking market. Bank for International Settlements, Basel.
6. Campbell J.Y., Lo A.W., and MacKinley A.C. The Econometrics of Financial Markets (1997), Princeton University Press, Priceton
7. Carey M., and Nini G. Is the corporate loan market globally integrated? A pricing puzzle. Journal of Finance 62 (2007) 2969-3007
8. Casolaro, L., Focarelli, D., Pozzolo, AF., 2003. The pricing effect of certification on bank loans: evidence from the syndicated credit market. In: Proceedings of the 39th Annual Conference on Bank Structure and Competition, Federal Reserve Bank of Chicago.
9. Denis D. Defensive changes in corporate payout policy: share repurchases and special dividends. Journal of Finance 45 (1990) 1433-1456
10. Dennis, S., Mullineaux, D.J., 1994. Some evidence on agency costs and syndicated loan sales. Mimeo, University of Kentucky.
11. Dennis S., and Mullineaux D.J. Syndicated loans. Journal of Financial Intermediation 9 (2000) 404-426
12. Dennis S., Debarshi N., and Sharpe I.G. The determinants of contract terms in bank revolving credit agreements. Journal of Financial and Quantitative Analysis 35 (2000) 87-110
13. Diamond D. Financial intermediation and delegated monitoring. Review of Economic Studies 59 (1984) 393-414
14. Diamond D. Monitoring and reputation: the choice between bank loans and directly placed debt. Journal of Political Economy 99 (1991) 689-721
15. Esty B., and Megginson W. Creditor rights, enforcement, and debt ownership structure: evidence from the global syndicated loan market. Journal of Financial and Quantitative Analysis 38 (2003) 37-59
16. Flannery M. Asymmetric information and risky debt maturity choice. Journal of Finance 41 (1986) 19-37
17. Gande, A., Saunders, A., 2006. Are banks still special when there is a secondary market for loans?. Available at 〈http://ssrn.com/abstract=873353〉.
18. Gande A., Puri M., and Saunders A. Bank entry, competition, and the market for corporate securities. Journal of Financial Economics 53 (1999) 165-195
19. Garfinkel J.A., Flannery M.J., and Billet M.T. The effect of lender identity on a borrowing firm's equity return. Journal of Finance 50 (1995) 699-718
20. Gorton G.B., and Pennacchi G.G. Banks and loan sales: marketing non-marketable assets. Journal of Monetary Economics 35 (1995) 389-411
21. Holmstrom B., and Tirole J. Financial intermediation, loanable funds, and the real sector. Quarterly Journal of Economics 112 (1997) 663-691
22. Ivashina, V., 2005. The effects of syndicate structure on loan spreads. Available at 〈SSRN: http://ssrn.com/abstract=849726.
23. James C.M. Some evidence on the uniqueness of bank loans. Journal of Financial Economics 19 (1987) 217-235
24. John K., Lynch A.W., and Puri M. Credit ratings, collateral and loan characteristics: implication for yield. Journal of Business 76 (2003) 371-409
25. Jones J., Lang W.W., and Nigro P. Recent trend in bank loan syndication: evidence for 1996 to 2000. Journal of Financial Services 28 (2005) 385-402
26. Lee S.W., and Mullineaux D.J. Monitoring, financial distress, and the structure of commercial lending syndicates. Financial Management (2004) 107-130
27. Leland H.E., and Pyle D.H. Informational asymmetries, financial structure and financial intermediation. Journal of Finance 32 (1977) 371-387
28. Lummer S., and McConnel J. Further evidence on bank lending process and capital market response to bank loan agreements. Journal of Financial Economics 25 (1992) 52-63
29. Moerman, R.W., 2006. The role of information asymmetry and financial reporting quality in debt contracting: evidence from the secondary loan market. Available at 〈http://ssrn.com/abstract=876867〉.
30. Preece D., and Mullineaux D.J. Monitoring, loan renegotiability, and firm value: the role of lending syndicates. Journal of Banking and Finance 20 (1996) 577-593
31. Rhodes T., Clark K.T., and Campbell M. Syndicated Lending (2000), Euromoney Books, London
32. Simons K. Why do banks syndicated loans?. New England Economic Revue. Federal Reserve Bank of Boston 1 (1993) 45-52
33. Slovin M.B., Shuska M.A., and Polonchek J.A. The value of bank durability: borrowers as the bank stakeholders. Journal of Finance 48 (1993) 247-266
34. Smith Jr. C.W. On the theory of financial contracting: the personal loan market. Journal of Monetary Economics 3 (1980) 333-357
35. Sufi A. Information asymmetry and financing arrangements: evidence from syndicated loans. Journal of Finance 62 (2007) 629-668
36. White H. A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica 48 (1980) 817-838