Template-type: ReDif-Paper 1.0
Author-Name: Contreras, Gaby
Author-Name: Bos, Jaap
Author-workplace-name: Finance, RS: GSBE EFME, RS: GSBE Theme Sustainable Development, RS: GSBE Theme Data-Driven Decision-Making
Author-Name: Kleimeier, Stefanie
Author-workplace-name: Finance, RS: GSBE EFME, RS: GSBE Theme Sustainable Development
Title: Link About It: Information Asymmetry, Knowledge Pooling and Syndication in Project Finance Lending
Abstract: In a collaborative setting, banks have an additional way to deal with asymmetric<br/>information between themselves and their borrowers: by pooling information.<br/>We explore the extent to which lead arrangers in the project finance syndicated<br/>lending market strategically choose their new partners in order to pool information,<br/>thereby lowering the overall degree of asymmetric information between<br/>themselves and their borrowers. We find that information pooling explains with<br/>whom banks collaborate, why they reach further into their network to find new<br/>partners and why they go outside their existing network if the need to pool information is high enough.
Series: GSBE Research Memoranda
Creation-Date: 20180405
Number: 008
File-URL: https://cris.maastrichtuniversity.nl/ws/files/25440319/RM18008.pdf
File-Format: application/pdf
File-Size: 485893
Handle: Repec:unm:umagsb:2018008
DOI: 10.26481/umagsb.2018008