Price discrimination on syndicated loans and the number of lenders : empirical evidence from the sovereign debt syndication

Syndicated loans and the number of lending relationships have raised growing attention. All other terms being equal (e.g. seniority), syndicated loans provide larger payments (in basis points) to lenders funding larger amounts. The paper explores empirically the motivation for such a price discrimination on sovereign syndicated loans in the period 1990-1997. First evidence suggests larger premia are associated with renegotiation prospects. This is consistent with the hypothesis that price discrimination is aimed at reducing the number of lenders and thus the expected renegotiation costs. However, larger payment discrimination is also associated with more targeted market segments and with larger loans, thus minimising borrowing costs and/or attempting to widen the circle of lending relationships in order to successfully raise the requested amount. JEL Classification: F34, G21, G33 This version: June, 2002. Later version (october 2003) with the title: "Why Borrowers Pay Premiums to Larger Lenders: Empirical Evidence from Sovereign Syndicated Loans" : http://publikationen.ub.uni-frankfurt.de/volltexte/2005/992

Institutional analysis for nitrogen pollution abatement in a Waikato river sub-catchment in New Zealand

Nitrogen levels in water resources in the Waikato region are increasing, mainly as a result of non-point source pollution from agricultural activities. Non-point pollution management is a complex issue requiring sufficient information and appropriate institutions. This paper considers the environmental policy literature and analyse how institutions, contract design, and monitoring and transaction costs in the presence of farm heterogeneity encourage optimal abatement. The analysis identifies the key institutional issues to be addressed in the design of appropriate policy measures to address water quality in Waikato river sub-catchment.Environmental policy, Transaction cost, Compliance, Contract design, Heterogeneity, Environmental Economics and Policy,

Are the Discounts in UK Open Offers and Placings Due to Inelastic Demand?

This paper investigates the large and diverse discounts in UK open offers and placings. Large discounts are a substantial cost to shareholders who do not buy new shares. The existing literature mainly examines US firm-commitment offers and private placements, but UK open offers and placings differ from both types of US offer. The paper presents evidence that inelastic demand, illiquidity of the issuer's shares, and financial distress are key determinants of the discount. The effects of inelastic demand and distress are much more apparent in UK than in US SEOs. We argue that institutional features obscure the role of these variables in the US context

Determinants of IJV performance using alternate indicators of performance

In this paper, we look at the factors determining IJV performance in a developing country. In doing so, the paper lays emphasis on two other aspects of performance: firstly the measure of performance and secondly the perspective from which it is evaluated. Our analysis draws on the results of a primary survey of 56 Indo-British IJVs in India. By extending our survey to include both partners involved in an IJV, the paper presents a framework which incorporates the perspectives of both the host and the foreign partner involved in the IJV. Several explanatory factors proved to be significant in understanding the performance of IJVs. Good partner relations, high degree of control and previous history of cooperation between the partners emerged as important determinants of the subjective indicator of performance. In the predictors of objective performance, dominance of the foreign partner in the initial years, an expectation of long-term as opposed to short-term financial gains, and the fulfilment of the motivation for minimising costs, all contributed positively to performance.International Joint Ventures, performance, Developing Countries

Kajian terhadap minat kerjaya di kalangan pelajar di Sekolah Menengah Teknik Pengkalan Chepa

Kajian ini dijalankan untuk melihat minat kerjaya di kalangan pe!ajar. Seramai 95 orang pelajar telah dipilih secara rawak mudah dan sebuah Sekolah Menengah Teknik Pengkalan Chepa di daerah Kota Bharu. Mereka terdiri daripada pelajar-pelajar tingkatan empat yang terdiri dari pelbagai jantina, bangsa, persekitaran tempat tinggai dan latar beiakang ibu bapa. Instrumen kajian yang digunakan iaiah Career TH/'ere-sV 7/?ven/orp (CII) dan &yD;rec^eJ&arc/! (SDS) yang telah diterjemahkan ke daiam Bahasa Melayu. Data-data yang diperoiehi diproses secara statistik deskriptif dan inferensi yang bertujuan untuk mengukur dan menguji hipotesis-hipotesis yang dibina dengan menggunakan min, anahsis varian sehata (ANOVA) pada aras signifikan 0.05 dan anahsis korelasi Pearson pada aras signifikan 0.01. Hasil kajian menunjukkan pelajar-pelajar cenderung daiam orientasi Intelek dan Daya Usaha. Keputusan kajian menunjukkan peiajar-peiajarmeminati bidangjurutera, ah!i perniagaan, melanjutkan pelajaran dan kesenian. Hasil kajian juga menunjukkan tidak ada perbezaan yang signifikan minat kerjaya pelajar-pelajar daiam bidang-bidang CII dan SDS dari segi jantina, bangsa dan persekitaran tempat tinggai. Dari segi hubungan, hasil kajian menunjukkan wujud hubungan yang signifikan daiam pemilihan kerjaya dengan tahap pendidikan ibu bapa

Density forecast evaluation and the effect of risk-neutral central moments on the currency risk premium: tests based on EUR/HUF option-implied densities

In this paper we estimate risk-neutral probability density functions from EUR/HUF currency options using the Malz (1997) method. First, we compare different option-based indicators. We present so-called 'shortcut' indicators, i.e. indicators that can be calculated directly, without the estimation of RNDs, but which show strong co-movement with the central moments of estimated densities. We also find that it is possible to construct probability-based indicators, which again exhibit strong correlation with the central moments. We present evidence that risk-neutral densities do not provide accurate forecasts for the distribution of the historical EUR/HUF exchange rate. The higher moments of risk-neutral densities are responsible for the rejection of forecasting ability. Our interpretation is that the standard deviation, the skewness and the kurtosis of the risk-neutral densities are significantly higher than the central moments of subjective densities. Finally, we show that the higher moments of risk-neutral densities are able to explain a significant part of the variability in the estimated risk premium. These latter results suggest that risk-neutral standard deviation and skewness can be used as proxy variables for the respective central moments of subjective densities.currency option, implied risk-neutral density function, density forecasting, risk premium, GMM.

Audit quality and firm performance : evidence from Botswana and Uganda

Purpose: The purpose of this study was to analyse the impact of audit quality on firm performance of listed companies in Botswana, and Uganda. As a monitoring mechanism, the role of auditing is to reduce information asymmetry between management and shareholders, thereby bolstering investor confidence which consequently improves firm value. -- Design/methodology/approach: The study sampled domestically listed financial and non-financial companies on the stock exchanges of Botswana and Uganda for the five years 2014-2018.Using auditor size and audit fees as proxies for audit quality and return on assets, and Tobin's Q as measures of firm performance, the relationship between the variables was determined through regression analysis. The study also controlled for complexity, risk and growth of the companies. -- Findings: Results of the study show that audit quality is a negative but non-significant predictor of firm performance for financial performance. -- Originality/value: The findings of the study provide empirical evidence into the effectiveness of auditing as a corporate governance mechanism in the Sub-Saharan capital markets.peer-reviewe