Determinants of Syndicated Loans: Does Financial Development matter?
(2016) NEKN02 20161Department of Economics
- Abstract
- Previous research has shown the significance of syndicated loans as an alternative financing source to corporate bonds. This thesis investigates the influence of the financial development of a country on specific syndicated loan terms. Our estimates show that country level dimensions such as banking stability, the efficiency of financial institutions and their depth play a limited economic role in the determination of loan pricing. The financial crisis, however, changed the lending behavior of banks around the world momentously. Our estimates further indicate that the financial crisis initiated a reconsideration of the lending behavior and financial development variables are taken more consciously into account when determining the loan... (More)
- Previous research has shown the significance of syndicated loans as an alternative financing source to corporate bonds. This thesis investigates the influence of the financial development of a country on specific syndicated loan terms. Our estimates show that country level dimensions such as banking stability, the efficiency of financial institutions and their depth play a limited economic role in the determination of loan pricing. The financial crisis, however, changed the lending behavior of banks around the world momentously. Our estimates further indicate that the financial crisis initiated a reconsideration of the lending behavior and financial development variables are taken more consciously into account when determining the loan price during the financial crisis and in subsequent periods. Our model paints a first multidimensional picture of how the financial crisis changed the consideration of financial development variables for determination syndicated loan terms. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8877251
- author
- Bracht, Jana Valentina LU and Meereis, Marc-Oliver LU
- supervisor
- organization
- course
- NEKN02 20161
- year
- 2016
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Syndicated Loan, Financial Development, Loan Terms, Financial Crisis
- language
- English
- id
- 8877251
- date added to LUP
- 2016-06-13 14:15:11
- date last changed
- 2016-06-13 14:15:11
@misc{8877251, abstract = {{Previous research has shown the significance of syndicated loans as an alternative financing source to corporate bonds. This thesis investigates the influence of the financial development of a country on specific syndicated loan terms. Our estimates show that country level dimensions such as banking stability, the efficiency of financial institutions and their depth play a limited economic role in the determination of loan pricing. The financial crisis, however, changed the lending behavior of banks around the world momentously. Our estimates further indicate that the financial crisis initiated a reconsideration of the lending behavior and financial development variables are taken more consciously into account when determining the loan price during the financial crisis and in subsequent periods. Our model paints a first multidimensional picture of how the financial crisis changed the consideration of financial development variables for determination syndicated loan terms.}}, author = {{Bracht, Jana Valentina and Meereis, Marc-Oliver}}, language = {{eng}}, note = {{Student Paper}}, title = {{Determinants of Syndicated Loans: Does Financial Development matter?}}, year = {{2016}}, }