The pricing effect of certification on syndicated loans

• 成果类型: Article
• 署名作者: Focarelli, Dario; Pozzolo, Alberto Franco; Casolaro, Luca
• 署名单位: University of Molise; Sapienza University Rome; European Central Bank; Bank of Italy
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2007.11.004
• 发表日期: 2008
• 页码: 335-349
• 关键词: bank lending; syndicated loans; certification; event studies

摘要

To verify if a delegated monitor can certify its ability to perform its assigned tasks, we test whether syndicated loans in which a larger share of the facility is retained by the arranger have lower interest rates. For a large sample of syndicated loans in over 80 countries we find that this certification effect exists and is greater for facilities characterized by greater due diligence and monitoring efforts. Further, for listed companies the announcement effect of the new loan on the stock price is an increasing function of the portions of the loan retained by the arranger. (C) 2007 Elsevier B.V. All rights reserved.