. In this paper we show that delegation can be the only way to exploit gains from diversification when overload costs of … diversification are high; delegation thus is the key ingredient to be able to diversify. … of credit due to moral hazard between the entrepreneur and external investors. Diversification could mitigate the moral …

We classify a large sample of banks according to the geographic diversification of their international syndicated loan … source of funding, while foreign banks with little diversification are the most fickle. Our findings suggest that the decline …