The Determinants of Oversubscription in Syndicated Loans

• Main Authors: Ma, Wei-Hsuan, 馬唯瑄
• Other Authors: Chang, Yuan-Chen
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/p783b7

碩士 === 國立政治大學 === 財務管理學系 === 107 === In recent years, the global syndicated loan market has become one of the largest and the most flexible international capital markets, and the case of oversubscription has become more common. This paper explores possible factors that affect the oversubscription of syndicated loans through the use of LPC Dealscan, the Compustat, and the CRSP databases. The empirical results show that the larger the total cost of borrowing (TCB), the greater the possibility of oversubscription. As for time-on-the-market (TOM), the longer the TOM takes, the easier the syndication can be oversubscribed. Furthermore, if the loan size, the asset of the borrowers, and the cash of the borrowers are large, the probability of oversubscription will increase. In contrast, loans syndicated by high reputation lead banks are associated with more oversubscriptions. Finally, in order to measure the impact of the market supply and demand, the stock return of the companies that issued loans is taken as the market demand side proxy, and the number of the joint loans issued represents the supply side proxy. The results indicate that the number of syndicated loan is positively correlated with oversubscription. If the number of syndicated loan issued at that time is larger, it is more likely to be oversubscribed.