The Effect Of Corruption And Country Risk On Syndicated Loan Establishment And Structure In Asia 1999-2003
| Main Authors: | Lasmono, Dian , Marciano, Deddy, Bartle, James |
|---|---|
| Format: | Proceeding PeerReviewed application/pdf |
| Terbitan: |
, 2013
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| Subjects: | |
| Online Access: |
http://repository.ubaya.ac.id/31868/7/THE%20EFFECT%20OF%20CORRUPTION%20AND%20COUNTRY%20RISK%20_2013.pdf http://repository.ubaya.ac.id/31868/ |
Daftar Isi:
- This research objective is to test whether the corruption perception index (CPI), and country risk index, both as a macroeconomic variable, could affect the lead arranger decision for syndicated loans or the size determination for syndicated loans. In this research, we use logit methodology to analyze the lead arranger decision to approve a syndicated loans application, meanwhile to analyze the size determination, we used tobit model analysis. The sample for this research came from all recorded loan transaction in Asia during 1999-2003. To strenghten the research analysis, we also apply robustnest check with an ordinary least square method. From this research, it is showed that the lead arranger consider their reputation and certification effect as an important factor that lead them to prefer a low risk syndicated loans. For size determintation, lead arranger will decide a higher size for a higher risk loan, since they expect a higher return as a risk compensation for the investment.