Studies on Transnational Group Lending with Optimal Monitoring Cost and Exchange Rate

• Main Authors: Wan-Syuan Liou, 劉婉璇
• Other Authors: Chie-Bien Chen
• Format: Others
• Language: en_US
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/91848783862138028834

碩士 === 國立東華大學 === 國際企業學系 === 95 === This study is based on the viewpoint of the Syndicated (two banks) and borrowers to investigate the international group lending behavior in evaluating and determining the optimal exchange rate in the Syndicated and monitoring cost between two borrowers. The focus of this study is the Real Options Approach (ROA) to investigate whether Syndicated and borrowers should join the project of an international lending group or not? Furthermore, in this study, the optimal critical threshold will be determined during the evaluating process. In the first case study, the constructed mathematical model can be used to deal with each member of borrowers to decide whether to monitor each other or not? And also whether the Syndicate should decide to lend to borrowers or not? If we assume that two borrowers, one of whom is a domestic enterprise and the other is a foreign enterprise are to conduct a project as a lending group depends on either choosing a monitor or non-monitor. With the purpose of working as a bi-lending group, there are four existing possible situations of monitoring-cost-expansion. These situations of payoffs will be defined and calculated. In the second case study, an international bank group dealing with a transnational group lending under the project values produced by borrowers and expected revenues of international banks which are affected by uncertainty exchange rate changing, international banks are whether willing to accessing the transnational group lending through a decision-making process or not. Finally, both previous discussed two different conceptual models which will presented by the Real Optional Approach in this study.