Do Cultural Differences Between Contracting Parties Matter? Evidence from Syndicated Bank Loans

By Mariassunta Giannetti, Yishay Yafeh. Management Sciences, 2012

367 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/dd9eaeb5616344dfa0a001461081f7c2c878c784

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Citations in the corpus

Syndication, Interconnectedness, and Systemic Risk (2018, neutral): “(4)Giannetti and Yafeh [20] also use the Euclidean distance, yet in a two-dimension space, to measure cultural differences between lead arrangers and borrowers and within member banks in loan syndicates.”
Do banks price discriminate spatially? Evidence from small business lending in local credit markets (2013, neutral): “Similarly, an increase of one standard deviation in the distance between borrower and rivals’ branches decreases the loan rate by about 7 basis points.”
Trust, Investment, and Business Contracting (2015, background): “Giannetti and Yafeh (2012) find that banks from a greater cultural distance offer borrowers smaller loans at higher interest rates and are more likely to require third-party guarantees.”
National culture and bank risk-taking (2017, neutral): “Furthermore, we add new insights to the developing literature on the impact of national culture to financial decision-making (e.g., Ahern et al., 2015; Giannetti and Yafeh, 2011).”
The Flight Home Effect: Evidence from the Syndicated Loan Market During Financial Crises (2012, background): “…to the lack of economies of scale, diversification of the loan portfolio does not lead to higher profitability for banks (DeLong, 2001; Acharya et al., 2006; Laeven and Levine, 2007).14 Moreover, Giannetti and Yafeh (2011) suggest that contracting costs are higher for loans to distant borrowers.”
The Effects of Corporate and Country Sustainability Characteristics on The Cost of Debt: An International Investigation (2014, positive): “Based on related previous literature on the determinants of bank loans (Goss and Roberts, 2011; Fields et al., 2012; Giannetti and Yafeh, 2012; Nandy and Lodh, 2012; Kim et al., 2014), we draw a variety of information from DealScan concerning borrowing companies to construct our set of control…”
Cultural Differences and Geography as Determinants of Online Prosocial Lending (2014, background): “Giannetti and Yafeh’s (2012) results, provide particularly clear support this interpretation, as they find that culturally distant lead banks are more likely to require third-party guarantees on syndicated bank loans (i.”
Determinants of Cross-Border Venture Capital Investments in Emerging and Developed Economies: The Effects of Relational and Institutional Trust (2015, neutral): “2008), and discourage risk sharing (Giannetti and Yafeh 2012) among potential investors.”
When Firms Talk, Do Investors Listen? The Role of Trust in Stock Market Reactions to Corporate Earnings Announcements (2012, background): “14 Examples of such studies the international context include Guiso, Sapienza, and Zingales (2009), Ahern, Daminielli, and Fracassi (2012), Giannetti and Yafeh (2012), Bottazzi, Da Rin, and Hellmann (2010), and Chui, accurately reflect the trust of the relevant economic decision makers.”