The Impact of Lending Relationships on the Choice and Structure of Bond Underwriting Syndicates

2017 ◽  
Author(s):  
Santiago Carbo-Valverde ◽  
Pedro Jesss Cuadros-Solas ◽  
Francisco Rodriguez-Fernandez
Keyword(s):  
Lending Relationships ◽  
Bond Underwriting ◽  
The Impact

scholarly journals Lending Relationships and Credit Rationing: The Impact of Securitization

2012 ◽  
Author(s):  
Santiago Carbo-Valverde ◽  
Hans Degryse ◽  
Francisco Rodriguez Fernandez
Keyword(s):  
Credit Rationing ◽  
Lending Relationships ◽  
The Impact

Lending relationships, credit ratings and bank loan spreads: evidence from Indonesian listed companies

2020 ◽  
Vol 16 (4) ◽  
pp. 455-479
Author(s):  
Yane Chandera ◽  
Lukas Setia-Atmaja
Keyword(s):  
Fixed Effects ◽  
Credit Ratings ◽  
Listed Companies ◽  
Bank Loan ◽  
Least Squares Regression ◽  
Firm Level ◽  
Content Type ◽  
Lending Relationships ◽  
Loan Spreads ◽  
The Impact

PurposeThis study examines the impact of firm-bank relationships on bank loan spreads and the mitigating role of firm credit ratings on that impact.Design/methodology/approachThe study sample consists of Indonesian publicly listed companies for the period 2006 to 2016; bank-loan data was extracted from the Loan Pricing Corporation Dealscan database. For the degree of firm-bank relationships, the data on each loan is manually computed, using five different methods taken from Bharath et al. (2011) and Fields et al. (2012). All of the regression analyses are controlled for the year fixed effects, heteroscedasticity, and firm-level clustering. To address the endogeneity issues, this study uses several methods, including partitioning the sample, running nearest-neighbour and propensity score matching tests, and using instrumental variables in two-staged least-squares regression models.FindingsIn line with relationship theory and in opposition to the hold-up argument, this study finds that lending relationships reduce bank loan spreads and that the impact is more noticeable among non-rated Indonesian firms. Specifically, each additional unit in the total number of years of a firm-bank relationship and the number of previous loan contracts with the same bank are associated with 7.34 and 9.15 basis-point decreases, respectively, in these loan spreads.Practical implicationsCorporations and banks should maintain close, long-term relationships to reduce the screening and monitoring costs of borrowing. Regulators should create public policies that encourage banks to put more emphasis on relationships in their lending practices, especially in relation to crisis-prone companies.Originality/valueTo the best of the authors’ knowledge, this is the first study to examine the impact of lending relationships on bank loan spreads in Indonesia. The study offers insights on banking relationships in emerging markets with concentrated banking industries, underdeveloped capital markets and prominent business-group affiliations.

scholarly journals The Price Impact of Lending Relationships

2015 ◽  
Vol 16 (3) ◽  
pp. 367-389 ◽  
Author(s):  
Ingrid Stein
Keyword(s):  
Strong Relationship ◽  
Price Impact ◽  
Bank Debt ◽  
Relationship Strength ◽  
Borrowing Costs ◽  
Lending Relationships ◽  
Relationship Length ◽  
The Impact ◽  
Over Time

Abstract This study analyzes the impact of bank relationships on a firm’s borrowing costs. We find that a firm’s borrowing costs decrease with relationship strength, proxied by the share of bank debt provided by the lender. Borrowing costs, however, rise with relationship length. While the increase over time is weak on average, bank-dependent borrowers face a substantial premium after several relationship years. Switching the lender initially leads to only a small price discount on average. However, the discount is considerable for borrowers that switch and had a strong relationship with their previous lender. Our results suggest that close lending relationships lead to benefits for the firm, but may also imply hold-up costs in the long term.

scholarly journals Lending Relationships and Credit Rationing: The Impact of Securitization

2011 ◽  
Author(s):  
Hans Degryse ◽  
Santiago Carbo ◽  
Francisco Rodriguez Fernandez
Keyword(s):  
Credit Rationing ◽  
Lending Relationships ◽  
The Impact

scholarly journals Lending Relationships and Credit Rationing: The Impact of Securitization

2011 ◽  
Author(s):  
Santiago Carbo-Valverde ◽  
Hans Degryse ◽  
Francisco Rodríguez-Fernández
Keyword(s):  
Credit Rationing ◽  
Lending Relationships ◽  
The Impact

scholarly journals SMES and Bank Lending Relationships: The Impact of Mergers

2004 ◽  
Author(s):  
Hans Degryse ◽  
Nancy Masschelein ◽  
Janet Mitchell
Keyword(s):  
Bank Lending ◽  
Lending Relationships ◽  
The Impact

Formation of Lunar Craters and Bright Rays as a Result of Meteorite Impacts

1962 ◽  
Vol 14 ◽  
pp. 415-418
Author(s):  
K. P. Stanyukovich ◽  
V. A. Bronshten
Keyword(s):  
Explosive Charge ◽  
The Moon ◽  
Meteorite Impacts ◽  
The Earth ◽  
Lunar Craters ◽  
The Impact

The phenomena accompanying the impact of large meteorites on the surface of the Moon or of the Earth can be examined on the basis of the theory of explosive phenomena if we assume that, instead of an exploding meteorite moving inside the rock, we have an explosive charge (equivalent in energy), situated at a certain distance under the surface.

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