The influence of information asymmetry upon syndicated loan

This study employed 14,372 syndicated loans in the US from 1997to 2006 to analyze the information asymmetry’ influence on lead arrangers and the participants. I use the moral hazard problem and information-selling hypothesis as theoretical framework and confirmed these frameworks with evidences. The indicator to measure the degree of the information asymmetry is the syndicated loan structure. And I find the evidence to prove how the information asymmetry can influence the loan structure and I also find the evidence to prove some factors can reduce the degree of information asymmetry, including the borrowers’ opaque, repetitive relationship between lender and borrowers and the arrangers’ reputation