Operations in offshore financial centers and loan syndicate structure
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 157-180 |
| Journal / Publication | Journal of Empirical Finance |
| Volume | 45 |
| Online published | 21 Nov 2017 |
| Publication status | Published - Jan 2018 |
| Externally published | Yes |
Link(s)
Abstract
This study examines whether a firm's subsidiary operations in offshore financial centers (OFCs) affect loan syndicate structure. We find that as borrowers engage more aggressively in operations in OFCs, lead lenders of a loan syndicate hold a larger percentage of loans to such firms and the number of lenders participating in a loan syndicate becomes smaller. This finding is robust to various robustness tests including propensity score matching analysis and quasi-natural experiment. Furthermore, we find that lead lender reputation and prior lending relationship with the borrower can attenuate the positive relation between OFC operations and loan syndicate concentration.
Research Area(s)
- Financial contracting, Information asymmetry, Loan syndicate structure, Multi-national firms, Offshore financial center
Citation Format(s)
Operations in offshore financial centers and loan syndicate structure. / Ge, Wenxia; Kim, Jeong-Bon; Li, Tiemei; Li, Yutao.
In: Journal of Empirical Finance, Vol. 45, 01.2018, p. 157-180.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
