Arbeitspapier
Who Chooses Whom? Syndication, Skills and Reputation
Syndication, which is a joint realization of one project/one investment by several capital providers, is a long existing phenomenon that plays a central role in many financial market segments. Within this paper we develop a theoretical model focusing on the dynamic aspect of syndication, namely the know-how transfer between syndication partners and their ability to learn. The core of the analysis checks whether repeated relationships and, thus, reputational concerns outweigh the temptation to renege on a given contract. Throughout the paper, we investigate two key topics. The first consists of the conditions under which investors syndicate their deals. The second focuses on who chooses whom. We show that experienced financiers may partner with either other experienced investors (in order to raise the success probability of a project) or with unskilled investors (who can gain knowledge). We further demonstrate that sometimes the syndication is impeded because the financier believes that his partner has strong incentives to either renege on a contract (hold-up problem) or to shirk (moral hazard problem).
- Language
-
Englisch
- Bibliographic citation
-
Series: ZEW Discussion Papers ; No. 05-74
- Classification
-
Wirtschaft
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Transactional Relationships; Contracts and Reputation; Networks
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- Subject
-
Syndication
Hold-up
Reputation
Learning
Projektfinanzierung
Investition
Finanzierung
Unternehmenskooperation
Wissenstransfer
Lernprozess
Prestige
Sunk Costs
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Tykvová, Tereza
- Event
-
Veröffentlichung
- (who)
-
Zentrum für Europäische Wirtschaftsforschung (ZEW)
- (where)
-
Mannheim
- (when)
-
2005
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Tykvová, Tereza
- Zentrum für Europäische Wirtschaftsforschung (ZEW)
Time of origin
- 2005
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