How has the global financial crisis affected syndicated loan terms in emerging markets? Evidence from China

This paper examines the impact of the recent global financial crisis on the cost of debt capital (syndicated loans) in a leading emerging market, namely China, using the difference-in-differences approach. Before the crisis China adopted banking reforms allowing the entry of foreign banks and more domestic participation in the syndicated loan market. As a result, during the crisis the volume of syndicated loans grew steadily, in contrast to other countries. In addition, the amount of foreign syndicated loans decreased and average maturity increased compared to the pre-crisis period. Our findings provide useful information to policy makers for devising effective responses to financial crises.

Final Accepted version: This is the peer reviewed version of the following article: Caporale GM, Lodh S, Nandy M. How has the global financial crisis affected syndicated loan terms in emerging markets? Evidence from China. Int J Fin Econ. 2018;1–14. https://doi.org/10.1002/ijfe.1633, which has been published in final form at https://doi.org/10.1002/ijfe.1633. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Published version: © 2018 The Authors International Journal of Finance & Economics Published by John Wiley & Sons Ltd.
This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.