Template-type: ReDif-Paper 1.0
Author-Name: Bos, J.W.B.
Author-workplace-name: Finance, RS: GSBE EFME
Author-Name: Contreras, M.G.
Author-Name: Kleimeier, S.
Author-workplace-name: Finance, RS: GSBE EFME
Title: Self-regulation in collaborative environments : the case of the equator principles in banking
Abstract: Using banks in the syndicated lending market, we discuss a firm-specific strategy that has been overlooked by the literature, namely, that self-regulated firms pressure other non-self-regulated firms in an attempt to reduce effort asymmetries when collaborating. We develop a framework that shows when such a strategy is likely to be present. This framework is built on the view that the costs and benefits of collaboration are equally shared among self-regulated firms that collaborate. However, when self-regulated firms collaborate with non-self-regulated firms, the effort they exert differs and is not equally shared. In particular, we find that when firms collaborate, self-regulated firms pressure non-self-regulated firms to become self-regulated with the purpose of reducing effort asymmetries, and such a pressure increases with the duration of the collaboration.
Series: GSBE Research Memoranda
Creation-Date: 20160101
Number: 007
File-URL: https://cris.maastrichtuniversity.nl/ws/files/1366826/guid-8db7e4be-43f4-4784-b530-87d389455e1d-ASSET1.0.pdf
File-Format: application/pdf
File-Size: 759517
Handle: Repec:unm:umagsb:2016007
DOI: 10.26481/umagsb.2016007