Bank reputation in the private debt market

Journal of Corporate Finance

Volumn 16, Issue 4, 2010, Pages 498-515

  McCahery, Joseph ^a   Schwienbacher, Armin ^b  

^a TILBURG UNIVERSITY   (Netherlands)

^b Business School   (Netherlands)

Author keywords

Bank reputation; Certification; Private debt; Syndicated loans; Syndication

Indexed keywords

EID: 77955175746     PISSN: 09291199     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jcorpfin.2010.04.002     Document Type: Article

References (49)

1. An H., Chan K.C. Credit rating and IPO pricing. J. Corp. Financ. 2008, 14:584-595.
2. Armstrong J. The syndicated loan market: developments in the North American context. Bank of Canada Working Paper 2003-2015 2003.
3. Asker J., Ljungqvist A. Sharing underwriters with rivals: implications for competition in investment banking. NYU Working Paper No. S-FI-05-03 2006.
4. Bascle G. Controlling for endogeneity with instrumental variables in strategic management research. Strateg. Org. 2008, 6(3):286-327.
5. Boot A. Relationship banking: what do we know?. J. Financ. Intermed. 2000, 9(1):7-25.
6. Boot A., Thakor A.V. Can relationship banking survive competition?. J. Finance 2000, 40(2):679-713.
7. Booth J.R., Smith R.L. Capital raising, underwriting, and the certification hypothesis. J. Financ. Econ. 1986, 15:261-281.
8. Bradley M., Roberts M.R. The structure and pricing of corporate debt covenants. Working paper, Wharton University of Pennsylvania 2004.
9. Brook Y., Hendershott R.J., Lee D. Corporate governance and recent consolidation in the banking industry. J. Corp. Financ. 2000, 6:141-164.
10. Carter R.B., Manaster S. Initial public offerings and underwriter reputation. J. Finance 1990, 65:1045-1067.
11. Chava S., Kumar P., Warga A. Managerial agency and bond covenants. Rev. Financ. Stud. 2010, 23(3):1120-1148.
12. Chowdhry B., Nanda V. Stabilization, syndication and pricing of IPOs. J. Financ. Quant. Anal. 1996, 31:25-42.
13. Cook D.O., Schellhorn C.D., Spellman L.J. Lender certification premiums. J. Bank. Financ. 2003, 27(8):1561-1579.
14. Cremers K.J.M., Nair V.B., Wei C. The congruence of shareholder and bondholder governance. Working paper, Yale University, Wharton School and Stern School of Business 2004.
15. Diamond D. Monitoring and reputation: the choice between bank loans and privately-placed debt. J. Polit. Econ. 1991, 99:689-721.
16. Drucker, S., Puri, M., 2006. Banks in capital markets: A survey, in: E. Eckbo, Empirical Corporate Finance, Handbooks in Finance, North-Holland Publishers (forthcoming).
17. Drucker S., Puri M. On loan sales, loan contracting, and lending relationships. Rev. Financ. Stud. 2009, 22(7):2835-2872.
18. Esty B., Megginson W. Creditor rights, enforcement, and debt ownership structure: evidence from the global syndicated loan market. J. Financ. Quant. Anal. 2003, 38:37-59.
19. Fang L.H. Investment bank reputation and the price and quality of underwriting services. J. Finance 2005, 60(6):2729-2761.
20. Flannery M. Asymmetric information and risky debt maturity choice. J. Finance 1986, 41:18-38.
21. Gadanecz B. The syndicated loan market: structure, development and implications. BIS Q. Rev. 2004, 2004:75-89.
22. Gande A., Puri M., Saunders A., Walter I. Bank underwriting of debt securities: modern evidence. Rev. Financ. Stud. 1997, 10(4):1175-1202.
23. Gande A., Puri M., Saunders A. Bank entry, competition, and the market for corporate securities underwriting. J. Financ. Econ. 1999, 54:165-195.
24. Gatti S., Kleimeier S., Megginsion W.L., Steffanoni A. Arranger Certification in Project Finance 2007, Working paper, available at SSRN: http://ssrn.com/abstract=968289.
25. Gilson S., Warner J. Private versus Public Debt: Evidence from Firms That Replace Bank Loans with Junk Bonds 1998, Working paper, available at SSRN: http://ssrn.com/abstract=140093.
26. Gomes A. Going public without governance. J. Finance 2000, 55:615-646.
27. Goyal V.K. Market discipline of bank risk: evidence from subordinated debt contracts. J. Financ. Intermed. 2005, 14:318-350.
28. Hamilton B.H., Nickerson J.A. Correcting for endogeneity in strategic management research. Strateg. Org. 2003, 1(1):51-78.
29. Heckman J. Sample selection bias as a specification error. Econometrica 1979, 47:153-161.
30. Huang R.R. Evaluating the real effect of bank branching deregulation: comparing contiguous counties across U.S. state borders. J. Financ. Econ. 2008, 87(3):678-705.
31. Jones J.D., Lang W.W., Nigro P.J. Agent bank behavior in bank loan syndication. J. Financ. Res. 2005, 28(3):385-402.
32. Kroszner R.S., Strahan Ph.E. What drives deregulation? Economics and politics of the relaxation of bank branching restrictions. Q. J. Econ. 1999, 114(4):1437-1467.
33. Lee S.W., Mullineaux D.J. The size and composition of commercial lending syndicates. Working paper, University of Kentucky 2001.
34. Leland H., Pyle D. Information asymmetries, financial structure, and financial intermediation. J. Finance 1977, 32(2):371-387.
35. Levine R. Finance and growth: theory and evidence. Handbook of Economic Growth 2004, Elsevier Science, The Netherlands. P. Aghion, S. Durlauf (Eds.).
36. Li K., Prabhala N.R. Self-selection models in corporate finance. Working paper, University of British Columbia and University of Maryland 2005.
37. Megginson W.L., Weiss K.A. Venture capitalist certification in initial public offerings. J. Finance 1991, 46:879-903.
38. Narayanan R.P., Rangan K.P., Rangan N.K. The effect of private-debt underwriting reputation on bank public-debt underwriting. Rev. Financ. Stud. 2007, 20(3):597-617.
39. Nash R., Netter J., Poulsen A. Determinants of contractual relations between shareholders and bondholders. J. Corp. Financ. 2003, 201-232.
40. Panyagometh K., Roberts G. Private information, incentive conflicts, and determinants of loan syndications. Working paper, York University 2003.
41. Pichler P., Wilhelm W. A theory of the syndicate: form follows function. J. Finance 2001, 56:2237-2264.
42. Puri M. Commercial banks in investment banking: conflict of interest or certification role?. J. Financ. Econ. 1996, 40:373-401.
43. Reisel N. On the value of restrictive covenants: an empirical investigation of public bond issues. Working paper, Rutgers University 2004.
44. Shapiro C. Premiums for high quality products as returns to reputations. Q. J. Econ. 1983, 98:659-679.
45. Smith C., Warner J. On financial contracting: an analysis of bond covenants. J. Financ. Econ. 1979, 7:117-161.
46. Sufi A. Information asymmetry and financing arrangements: evidence from syndicated loans. J. Finance 2007, 62(2):629-668.
47. Wei W. Does debt maturity choice signal a firm's credit quality?. Working paper, Queen's University 2005.
48. Wilson R. The theory of syndicates. Econometrica 1968, 36:119-132.
49. Wintoki M.B., Linck J.S., Netter J.M. Endogeneity and Dynamics of Corporate Governance 2010, Working paper, available at SSRN: http://ssrn.com/abstract=970986.