Non-Fundamental Loan Renegotiations

• 成果类型: Article; Early Access
• 署名作者: Chen, Aj yuan; Phillips, Matthew a.; Wittenberg-moerman, Regina; Ye, Tiange
• 署名单位: University of British Columbia; Northwestern University; National University of Singapore
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456; 1475-679X
• DOI: 10.1111/1475-679x.70080
• 发表日期: 2026-08-16
• 关键词: private loans; syndicated loans; RENEGOTIATION; Secondary loan market; liquidity; index reconstitution; Nonbank lenders; institutional investors; Debt financing; regression-discontinuity; information asymmetry; MARKET; banks; FIRMS

摘要

Prior studies predominantly examine fundamental performance-driven explanations of loan renegotiations. We contrast with this work by investigating the improvement in secondary loan market trading conditions as a non-fundamental driver of loan renegotiation. Exploiting a regression discontinuity design around the LSTA 100 Index reconstitution, we find that index-included loans are around five times more likely to receive interest-rate-reducing amendments than comparable loans just below the index inclusion threshold. Within-loan-package tests confirm that these renegotiations are not driven by changes in the borrower's fundamental performance. The threat of refinancing likely drives this effect, as the results are more pronounced when such threats are more credible.