EconPapers    
Economics at your fingertips  
 

Financial Institutions Network and the Certification Value of Bank Loans

Christophe Godlewski () and Bulat Sanditov

Financial Management, 2018, vol. 47, issue 2, 253-283

Abstract: Social networks play an important role in mitigating informational frictions related to financial intermediation, especially bank lending. We investigate the effect of the network of financial institutions on the certification value of bank loans using data on syndicated loans to European companies. We find that the presence of more central leaders in a syndicate substantially increases the stock market's reaction to loan announcements. This certification value is reinforced when informational frictions are more important but vanishes when there are severe disruptions in the functioning of financial markets, such as during the financial crisis of 2008.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/fima.12197

Related works:
Working Paper: Financial institutions network and the certification value of bank loans (2018)
Working Paper: Financial institution network and the certification value of bank loans (2015)
Working Paper: Financial institution network and the certification value of bank loans (2015)
Working Paper: Financial institution network and the certification value of bank loans (2015)
Working Paper: Financial institution network and the certification value of bank loans (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:finmgt:v:47:y:2018:i:2:p:253-283

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0046-3892

Access Statistics for this article

Financial Management is currently edited by William G. Christie

More articles in Financial Management from Financial Management Association International Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2019-04-18
Handle: RePEc:bla:finmgt:v:47:y:2018:i:2:p:253-283