A SYMMETRY INFORMATION AND CREDIT RISK EFFECT ON LOAN PRICING IN ASIA PACIFIC

Alim, Ivana and Marciano, Deddy and Wijaya, Liliana Inggrit (2016) A SYMMETRY INFORMATION AND CREDIT RISK EFFECT ON LOAN PRICING IN ASIA PACIFIC. In: Proceedings the 13th INSYMA "Market Integration in ASEAN: Sustainable Growth and Cross - Cultural Issues. VNU-HCM PRESS,, Ho Chi Minh City, Vietnam. ISBN 978-602-73852-0-7

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Abstract

The purpose of this research is to test the relationship of the independent variables (commercial bank, mix bank, country risk, CPI, foreign lender, log amount, maturity, ticker, secure, senior, deal purpose, and sector industries) to the dependent variables (loan spread). Key issues in this study consisted of information asymmetry, moral hazard, adverse selection, and country risk. The results of this research show the variable that significantly affect the loan pricing decisions by lenders especially in Asia Pacific countries. Borrowers in Asia Pacific can learn from the lender’s behavior in the loan pricing decision. They also can have more knowledge on the determinants influence the procedure of the loan pricing. Governments of the Asia Pacific countries can use this study to gain more information about factors that influence the loan pricing. They should make a regulation according loan pricing decisions and they should monitored the process of the loans for the local banks so they wouldn’t be bankrupt because loans in Asia Pacific contains high risk.

Item Type: Book Section
Uncontrolled Keywords: asymmetry information, credit risk, loan pricing
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Business and Economic > Department of Management
Depositing User: Deddy Marciano 3372
Date Deposited: 30 Jul 2017 15:57
Last Modified: 30 Jul 2017 15:57
URI: http://repository.ubaya.ac.id/id/eprint/30475

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