Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 7, 2023 erstellt
Description:
We examine how related party transactions (RPTs) affect the syndicated loan structure of borrowing firms affiliated with a business group, differentiating between detrimental and beneficial RPTs. We find that borrowers with more detrimental RPTs have less concentrated syndicates, while those with more beneficial RPTs have more concentrated syndicates. These results suggest that lead arrangers structure syndicates to facilitate monitoring and reduce the risk of RPT-related creditor expropriation. We also find that foreign lenders are more involved in syndicated loans requiring intense monitoring. The relationship between RPTs and syndicate structure further depends on prior lending relationships, informational opacity, ultimate owner type, and investor protection