Publication
Firm transparency & the impact of economic crises on Western European syndicated loan pricing
| Summary: | This research investigates the relationship between the transparency level of a firm and the effects of economic crises on the all-in-drawn spread of syndicated loans. To conduct my research, I gathered a sample of 3,116 syndicated loans, granted to 932 individual companies in the Benelux, Germany and France granted from 01/2008 until 06/2022. This timeframe covers 3 major economic crises: the 2008/2009 financial crisis, the European debt crisis, and the COVID-19 crisis. My findings confirm that public and especially large-cap firms experience a stronger increase in syndicated loan prices during economic crises. Furthermore, I also provide a deeper understanding of the dynamics at play by including borrower-specific variables, such as the EBITDA and the effect of a borrowers’ credit rating. To validate my results, I have also performed a series of robustness checks. |
|---|---|
| Main Authors: | Lecompte, Gérôme Gijs |
| Subject: | Syndicated loans Economic crises Firm transparency Empréstimos sindicalizados Crises económicas Transparência das empresas |
| Year: | 2023 |
| Country: | Portugal |
| Document type: | master thesis |
| Access type: | open access |
| Associated institution: | Universidade Católica Portuguesa |
| Language: | English |
| Origin: | Veritati - Repositório Institucional da Universidade Católica Portuguesa |
| Summary: | This research investigates the relationship between the transparency level of a firm and the effects of economic crises on the all-in-drawn spread of syndicated loans. To conduct my research, I gathered a sample of 3,116 syndicated loans, granted to 932 individual companies in the Benelux, Germany and France granted from 01/2008 until 06/2022. This timeframe covers 3 major economic crises: the 2008/2009 financial crisis, the European debt crisis, and the COVID-19 crisis. My findings confirm that public and especially large-cap firms experience a stronger increase in syndicated loan prices during economic crises. Furthermore, I also provide a deeper understanding of the dynamics at play by including borrower-specific variables, such as the EBITDA and the effect of a borrowers’ credit rating. To validate my results, I have also performed a series of robustness checks. |
|---|
Funded activities
No funded projects found.