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Market response to syndicated loan announcements from high‐profile failed and acquiring banks during the global financial crisis
Author(s) -
Gasbarro Dominic,
Le KimSong,
Schwebach Robert G.,
Zumwalt J. Kenton
Publication year - 2020
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12493
Subject(s) - syndicated loan , syndicate , financial system , financial crisis , loan , business , transactional leadership , investment banking , investment (military) , monetary economics , finance , economics , political science , management , macroeconomics , politics , law
Abstract Previous studies that have examined the impact of the 2008 financial crisis on syndicated loans have ignored potential differences between lending banks by explicitly or implicitly aggregating all lenders together and focusing on borrower characteristics. One must jointly consider both borrower and lender to fully understand the complex role of the syndicate during this period. We consider the identity of the lender, with a focus on five major US banks that failed and their five corresponding acquirers. Our results highlight the distinct roles of investment and commercial banks and facilitate an understanding of relationship and transactional‐based lending.