This paper examines how borrower firm characteristics affect syndicate size structure in the Japanese loan market for the 1999-2003 period when the banking system is undergoing a major consolidation. We find that syndicates are smaller when borrowers have higher credit risk and when borrowers...

We examine the factors that influence the structure (size and composition)of a commercial lending syndicate. We find that syndicates are smaller and more concentrated, as reflected in the Hirschman Herfindahl index for the lending group, when there is less information available about the...

We examine the size and composition of commercial lending syndicates. Syndicates are smaller and more concentrated when there is little information about the borrower, when credit risk is relatively high, and when a loan is secured. This suggests syndicates are structured to enhance monitoring...

This paper examines how the onset of a financial crisis affects the operation of internal capital markets among firms within a diversified business group. We find that active internal capital markets within Korean business groups (chaebols) attenuated the financial constraints of the...

A model of multimarket spatial competition is developed where small, single-market banks compete with large, multimarket banks (LMBs) for retail loans and deposits. Consistent with empirical evidence, LMBs are assumed to set retail interest rates uniformly across markets, have different...

Performance of inflation indicators for predicting the probability of inflation falling inside constant and moving targets is considered with a probit model using U.S. data. Given Fed emphasis on achieving price stability, particular attention is given to the target that future inflation will be...

A model of multimarket spatial competition is developed where small, single-market banks compete with large, multimarket banks (LMBs) for retail loans and deposits. Consistent with empirical evidence, LMBs are assumed to set retail interest rates uniformly across markets, have different...

The issue of choice between specialization and diversification in corporate business activity has become the center of large body of corporate finance literature in recent years. U.S. empirical evidence on the effects of diversification after merger is mixed, suggesting that the diversification...

Using a sample of telecommunications mergers during the 1990-1994 period, we find that acquiring firms underperform relative to their size and industry matched control firms. The annual cumulative abnormal returns (CARs) to these firms are significantly negative for five years following the...