The Impact of Joint Participation on Liquidity in Equity and Syndicated Bank Loan Markets

Linda Allen, Aron Gottesman, Lin Peng
{"title":"The Impact of Joint Participation on Liquidity in Equity and Syndicated Bank Loan Markets","authors":"Linda Allen, Aron Gottesman, Lin Peng","doi":"10.2139/ssrn.890149","DOIUrl":null,"url":null,"abstract":"Market liquidity is impacted by the presence of financial intermediaries that are informed and active participants in both the equity and the syndicated bank loan markets, specifically informationally advantaged lead arrangers of syndicated bank loans that simultaneously act as equity market makers (dual market makers). Employing a two-stage procedure with instrumental variables, we identify the simultaneous equations model of liquidity and dual market maker decisions. We find that the presence of dual market makers improves the liquidity of the more competitive and transparent equity markets, but widens the spread in the less competitive over-the-counter loan market, particularly for small, informationally opaque firms.","PeriodicalId":315176,"journal":{"name":"Banking & Insurance","volume":"62 2 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2011-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"17","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Banking & Insurance","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.890149","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 17

Abstract

Market liquidity is impacted by the presence of financial intermediaries that are informed and active participants in both the equity and the syndicated bank loan markets, specifically informationally advantaged lead arrangers of syndicated bank loans that simultaneously act as equity market makers (dual market makers). Employing a two-stage procedure with instrumental variables, we identify the simultaneous equations model of liquidity and dual market maker decisions. We find that the presence of dual market makers improves the liquidity of the more competitive and transparent equity markets, but widens the spread in the less competitive over-the-counter loan market, particularly for small, informationally opaque firms.
联合参与对股权和银团贷款市场流动性的影响
市场流动性受到金融中介机构存在的影响,这些金融中介机构在股权和银团银行贷款市场中都是知情的和积极的参与者,特别是信息优势的银团银行贷款的牵头人,同时充当股权做市商(双重做市商)。采用工具变量的两阶段程序,我们确定了流动性和双重做市商决策的联立方程模型。我们发现,双重做市商的存在改善了竞争更激烈、更透明的股票市场的流动性,但扩大了竞争不那么激烈的场外贷款市场的流动性,特别是对于信息不透明的小型公司。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
自引率
0.00%
发文量
0
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信