The Effect of Corruption Perception Index and Country Risk Index on Syndicated Loan Establishment and Structure in Asia 1999-2003

Lasmono, Dian and Marciano, Deddy and Bartle, James (2012) The Effect of Corruption Perception Index and Country Risk Index on Syndicated Loan Establishment and Structure in Asia 1999-2003. SSRN (Social Science Research Network). pp. 1-12. ISSN 1556-5068

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Abstract

This paper tests whether the corruption perception index (CPI), and country risk index, both being macro economic variables, could affect the lead arranger decision for syndicated loans or the size allocation for syndicated loans. In this research, we use logit methodology to analyze the lead arranger decision to approve a syndicated loans application. To analyze the size determination, we use tobit model analysis. The sample for this research came from all recorded loan transaction in Asia during the period 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 larger size for a higher risk loan, since they expect a higher return as a risk compensation for the investment.

Item Type:	Article
Uncontrolled Keywords:	corruption, country risk, loan, syndication
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:	Faculty of Business and Economic > Department of Management
Depositing User:	Ester Sri W. 196039
Date Deposited:	25 Sep 2024 08:48
Last Modified:	25 Sep 2024 08:48
URI:	http://repository.ubaya.ac.id/id/eprint/47152

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