Factors Affecting Syndicated Loan Spreads in Indonesia, Thailand, and Vietnam

Bryan, Jonathan and Marciano, Deddy and Ernawati, Endang and Bartle, James (2022) Factors Affecting Syndicated Loan Spreads in Indonesia, Thailand, and Vietnam. In: Proceedings of the 19th International Symposium on Management (INSYMA 2022), 19-20 May 2022, The Patra Bali and Resort Kuta Bali.

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Abstract

This study aims to analyze the effect of loan information (ie, number of lenders, loan amount, and loan maturity) and borrower characteristics (ie, public, firm size, leverage, and profitability), as well as control variables such as country and year on syndicated loan, spread in public companies and private companies in Indonesia, Thailand, and Vietnam during the 2008–2018 period by calculating the All In Spread Drawn (AISD) of the syndicated loans over LIBOR. This study applied a quantitative approach through the ordinary least squares method on a sample of 389 observations. A total of 118 observations came from public companies, and 271 observations came from private companies. This study shows that syndicated loans given to private companies are more expensive than public companies. However, this can be minimized by increasing the loan exposure for private firms through a larger number of lenders. It can also be seen that public companies with larger assets, higher returns on equity, and borrowing with shorter terms will be subject to lower interest rates. The spreads for syndicated loans are the most expensive in Indonesia, followed by Vietnam and Thailand.

Item Type:	Conference or Workshop Item (Paper)
Uncontrolled Keywords:	syndicated loan spreads, loan information, borrower characteristic
Subjects:	H Social Sciences > HG Finance
Divisions:	Faculty of Business and Economic > Department of Management
Depositing User:	Deddy Marciano 3372
Date Deposited:	10 Apr 2023 03:58
Last Modified:	10 Apr 2023 03:58
URI:	http://repository.ubaya.ac.id/id/eprint/43865

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