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Vijay Yerramilli - One of the best experts on this subject based on the ideXlab platform.

  • does poor performance Damage the Reputation of financial intermediaries evidence from the loan syndication market
    Journal of Finance, 2011
    Co-Authors: Radhakrishnan Gopalan, Vikram K Nanda, Vijay Yerramilli
    Abstract:

    We investigate the effect of poor performance on financial intermediary Reputation by estimating the effect of large-scale bankruptcies among a lead arranger’s borrowers on its subsequent syndication activity. Consistent with Reputation Damage, such lead arrangers retain larger fractions of the loans they syndicate, are less likely to syndicate loans, and are less likely to attract participant lenders. The consequences are more severe when borrower bankruptcies suggest inadequate screening or monitoring by the lead arranger. However, the effect of borrower bankruptcies on syndication activity is not present among dominant lead arrangers, and is weak in years in which many lead arrangers experience borrower bankruptcies. INVESTORS DELEGATE THE TASK of screening and monitoring firms to specialized financial intermediaries such as banks and underwriters (Leland and Pyle (1977) and Diamond (1984)). A downside to such delegation is that it can introduce a layer of information and incentive problems between financial intermediaries and investors. A large theoretical literature on the role of Reputation suggests that an intermediary’s concern with maintaining its Reputation for diligent screening and monitoring will mitigate such agency problems. The intermediary knows that poor performance on its part will hurt its Reputation and lead to loss of future economic rents. 1 Despite the importance of this argument, there is little direct empirical evidence on whether poor performance imposes Reputation-related costs on financial intermediaries, and how the costs vary across institutions and with market conditions. If anything, the revelation

  • does poor performance Damage the Reputation of financial intermediaries evidence from the loan syndication market
    Social Science Research Network, 2010
    Co-Authors: Radhakrishnan Gopalan, Vikram K Nanda, Vijay Yerramilli
    Abstract:

    We investigate the effect of poor performance on financial intermediary Reputation by estimating the effect of large-scale bankruptcies among a lead arranger's borrowers on its subsequent syndication activity. Consistent with Reputation Damage, such lead arrangers retain larger fractions of the loans they syndicate, are less likely to syndicate loans, and are less likely to attract participant lenders. The consequences are more severe when borrower bankruptcies suggest inadequate screening or monitoring by the lead arranger. However, borrower bankruptcies have little effect on syndication activity of the most dominant lead arrangers, and in years in which many lead arrangers experience borrower bankruptcies.

Guido Berens - One of the best experts on this subject based on the ideXlab platform.

  • avoiding Reputation Damage in financial restatements
    RSM Discovery - Management Knowledge, 2009
    Co-Authors: Fred H M Gertsen, Cees B M Van Riel, Guido Berens
    Abstract:

    markdownabstract__Abstract_ If your company is forced to issue a financial restatement, how can the right managerial behaviour help to minimise the Damage to corporate Reputation?

  • avoiding Reputation Damage in financial restatements
    Long Range Planning, 2006
    Co-Authors: Fred H M Gertsen, Cees B M Van Riel, Guido Berens
    Abstract:

    The incidence of companies restating their financial results has recently been increasing steadily each year. This has resulted in the public trust in large companies being eroded, and in some cases, most notably Enron, the restatement has triggered the company's downfall. Corporate collapse is not always the result however. Companies can to some extent control the Damage that a restatement inflicts on their market value. In this article, we outline which factors can aggravate this Damage, and which actions can alleviate it.

Radhakrishnan Gopalan - One of the best experts on this subject based on the ideXlab platform.

  • does poor performance Damage the Reputation of financial intermediaries evidence from the loan syndication market
    Journal of Finance, 2011
    Co-Authors: Radhakrishnan Gopalan, Vikram K Nanda, Vijay Yerramilli
    Abstract:

    We investigate the effect of poor performance on financial intermediary Reputation by estimating the effect of large-scale bankruptcies among a lead arranger’s borrowers on its subsequent syndication activity. Consistent with Reputation Damage, such lead arrangers retain larger fractions of the loans they syndicate, are less likely to syndicate loans, and are less likely to attract participant lenders. The consequences are more severe when borrower bankruptcies suggest inadequate screening or monitoring by the lead arranger. However, the effect of borrower bankruptcies on syndication activity is not present among dominant lead arrangers, and is weak in years in which many lead arrangers experience borrower bankruptcies. INVESTORS DELEGATE THE TASK of screening and monitoring firms to specialized financial intermediaries such as banks and underwriters (Leland and Pyle (1977) and Diamond (1984)). A downside to such delegation is that it can introduce a layer of information and incentive problems between financial intermediaries and investors. A large theoretical literature on the role of Reputation suggests that an intermediary’s concern with maintaining its Reputation for diligent screening and monitoring will mitigate such agency problems. The intermediary knows that poor performance on its part will hurt its Reputation and lead to loss of future economic rents. 1 Despite the importance of this argument, there is little direct empirical evidence on whether poor performance imposes Reputation-related costs on financial intermediaries, and how the costs vary across institutions and with market conditions. If anything, the revelation

  • does poor performance Damage the Reputation of financial intermediaries evidence from the loan syndication market
    Social Science Research Network, 2010
    Co-Authors: Radhakrishnan Gopalan, Vikram K Nanda, Vijay Yerramilli
    Abstract:

    We investigate the effect of poor performance on financial intermediary Reputation by estimating the effect of large-scale bankruptcies among a lead arranger's borrowers on its subsequent syndication activity. Consistent with Reputation Damage, such lead arrangers retain larger fractions of the loans they syndicate, are less likely to syndicate loans, and are less likely to attract participant lenders. The consequences are more severe when borrower bankruptcies suggest inadequate screening or monitoring by the lead arranger. However, borrower bankruptcies have little effect on syndication activity of the most dominant lead arrangers, and in years in which many lead arrangers experience borrower bankruptcies.

J J Graafland - One of the best experts on this subject based on the ideXlab platform.

Fred H M Gertsen - One of the best experts on this subject based on the ideXlab platform.

  • avoiding Reputation Damage in financial restatements
    RSM Discovery - Management Knowledge, 2009
    Co-Authors: Fred H M Gertsen, Cees B M Van Riel, Guido Berens
    Abstract:

    markdownabstract__Abstract_ If your company is forced to issue a financial restatement, how can the right managerial behaviour help to minimise the Damage to corporate Reputation?

  • avoiding Reputation Damage in financial restatements
    Long Range Planning, 2006
    Co-Authors: Fred H M Gertsen, Cees B M Van Riel, Guido Berens
    Abstract:

    The incidence of companies restating their financial results has recently been increasing steadily each year. This has resulted in the public trust in large companies being eroded, and in some cases, most notably Enron, the restatement has triggered the company's downfall. Corporate collapse is not always the result however. Companies can to some extent control the Damage that a restatement inflicts on their market value. In this article, we outline which factors can aggravate this Damage, and which actions can alleviate it.