Invest in Disagree: Within-Syndicate Disagreement and you may Syndicated Mortgage Contracting
Invest in Disagree: Within-Syndicate Disagreement and you may Syndicated Mortgage Contracting Present research has shown one to dual holders-that's, associations that additionally hold equity and you may debt of the identical enterprise-internalize the stockholder-collector disagreement and bring about incentive alignment between them events (Jiang mais aussi al. However, minimization of the stockholder-collector argument will come at the cost of establishing a special disagreement among financial institutions. Financial institutions holding high collateral bet in the debtor agencies could have very different bonuses than just creditors holding really small if any security bet. It dispute between loan providers can also be ergo apply at ex boyfriend-ante personal debt hiring and you can ex boyfriend-post personal debt renegotiation. Inside our previous paper, we strive to research new perception of dispute from passion certainly…