Casolaro, Luca; Focarelli, Dario; Pozzolo, Alberto Franco - Dipartimento di Economia, Gestione, Società e … - 2003
This paper provides a direct test of banks' ability to mitigate informational asymmetries. In syndicated loans, lenders' incentive to screen ex ante and monitor ex post borrowers increases with the share they retain; consequently, the higher this share, the less risky the loan is considered by...