Banking Environment and Syndicate Structure : A Cross‐Country Analysis

We investigate how syndicate structure is influenced by the characteristics of the banking environment, such as banking market structure, financial development, banking regulation and supervision, and legal risk. The results of a cross‐country analysis performed on a sample of 15,586 syndicated loan facilities for borrowers from 24 countries over a period of 15 years confirm that syndicate structure is influenced by banking environment consistent with agency costs minimization and efficient recontracting objectives