Houston, Joel F.
[Verfasser:in]
;
Itzkowitz, Jennifer
[Sonstige Person, Familie und Körperschaft];
Naranjo, Andy
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
In: Journal of Corporate Finance, Vol. 42, 2017
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 7, 2014 erstellt
Beschreibung:
This paper examines the ability of firms to overcome cross-country borrowing barriers through foreign asset connections. We find that firm-level foreign assets are an important mechanism in reducing the boundary between borrowers and lenders and thereby enhancing capital access in the syndicated loan market. Our results suggest that firms with foreign assets are more likely to select a foreign lead lender and that the corresponding loans have better pricing terms. We also find that the institutional and regulatory environment heavily influences the choice of lender, and that borrowers are more likely to partner with bankers with whom they share common cultural and language ties. These results lend support to the hypothesis that foreign presence helps reduce information barriers that may arise across borders