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Does a banking relationship help a firm on the syndicated loans market in a time of financial crisis?

Refait-Alexandre, Catherine; Bouaiss, Karima; Alexandre, Hervé (2011), Does a banking relationship help a firm on the syndicated loans market in a time of financial crisis?, Annual Meeting of the Midwest Finance Association, 2011-03, Chicago, Etats-Unis

Type
Communication / Conférence
External document link
http://halshs.archives-ouvertes.fr/halshs-00538328/fr/
Date
2011
Conference title
Annual Meeting of the Midwest Finance Association
Conference date
2011-03
Conference city
Chicago
Conference country
Etats-Unis
Pages
22
Metadata
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Author(s)
Refait-Alexandre, Catherine cc
Bouaiss, Karima
Alexandre, Hervé
Abstract (EN)
The volume of credit granted in the form of syndicated loans saw a marked downturn in 2008. This article seeks to understand how certain firms were nonetheless able to benefit from larger facilities or a lower interest rate than others. Using a sample of syndicated loans issued in 2008 in North America and Europe, and records of syndicated loans since 2003, we show that firms that had developed a relationship with an investment bank obtained a lower spread, but did not benefit from greater loan facilities or longer maturities.
Subjects / Keywords
Credit Rationing; Banking Relationship; Syndicated Loans
JEL
G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
G10 - General