Link About It: Information Asymmetry, Knowledge Pooling and Syndication in Project Finance Lending

Gaby Contreras, Jaap Bos, Stefanie Kleimeier

Research output: Working paperProfessional

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Abstract

In a collaborative setting, banks have an additional way to deal with asymmetric
information between themselves and their borrowers: by pooling information.
We explore the extent to which lead arrangers in the project finance syndicated
lending market strategically choose their new partners in order to pool information,
thereby lowering the overall degree of asymmetric information between
themselves and their borrowers. We find that information pooling explains with
whom banks collaborate, why they reach further into their network to find new
partners and why they go outside their existing network if the need to pool information is high enough.
Original languageEnglish
PublisherMaastricht University, Graduate School of Business and Economics
DOIs
Publication statusPublished - 5 Apr 2018

Publication series

SeriesGSBE Research Memoranda
Number008

Keywords

  • financial economics and financial management

Cite this

Contreras, G., Bos, J., & Kleimeier, S. (2018). Link About It: Information Asymmetry, Knowledge Pooling and Syndication in Project Finance Lending. Maastricht University, Graduate School of Business and Economics. GSBE Research Memoranda, No. 008 https://doi.org/10.26481/umagsb.2018008