Contenu | Menu

Large EM Strasbourg
Autres sites
Large

Finance

EUROFIDAI Data Award 2017 Christophe J. Godlewski

Publié le 9 janvier 2018, Mis à jour le 10 janvier 2018

Christophe J. Godlewski, professeur de finance, a obtenu l’EUROFIDAI data award pour son article co-écrit avec Bulat Sanditov (Télécom Ecole de Management, Institut Mines-Télécom) "Financial Institutions Network and the Certification Value of Bank Loans" publié dans la revue Financial Management. Ce prix récompense les meilleurs articles académiques dont les auteurs se sont appuyés sur des services, des données journalières ou à haute fréquence fournis par EUROFIDAI.

Financial Institutions Network and the Certification Value of Bank Loans :

What is it about?
Social networks play an important role in finance, especially for bank lending. We investigate the effect of the network of financial institutions on the value of bank loans. We use data on large loans to European companies. We find that the presence of more central and reputable lenders increases the stock market's reaction to loan announcements.

Why is it important?
These results are important for the development of credit markets. Borrowers can gain by working with reputable and central lenders, whereas the latter should care about their reputation and social capital, notably by maintaining and developing valuable interactions, reciprocity, and trust. Furthermore, these findings are even more important regarding the European credit market, which is the main channel for the external funding of companies.

Abstract
Social networks play an important role in mitigating informational frictions related to financial intermediation, especially bank lending. We investigate the effect of the network of financial institutions on the certification value of bank loans using data on syndicated loans to European companies. We find that the presence of more central leaders in a syndicate substantially increases the stock market's reaction to loan announcements. This certification value is reinforced when informational frictions are more important but vanishes when there are severe disruptions in the functioning of financial markets, such as during the financial crisis of 2008.
Partagez ! Recommandez !
Partagez ! Recommandez !
EM Strasbourg Business School
61 avenue de la Forêt-Noire
F-67085 Strasbourg Cedex, France

[legende-image]91[/legende-image]
Suivez-nous

Connexion