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Determinants of Syndicated Loans: Does Financial Development matter?

Bracht, Jana Valentina LU and Meereis, Marc-Oliver LU (2016) NEKN02 20161
Department 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)
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author
Bracht, Jana Valentina LU and Meereis, Marc-Oliver LU
supervisor
organization
course
NEKN02 20161
year
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},
  keyword      = {Syndicated Loan,Financial Development,Loan Terms,Financial Crisis},
  language     = {eng},
  note         = {Student Paper},
  title        = {Determinants of Syndicated Loans: Does Financial Development matter?},
  year         = {2016},
}