Proceedings of the 19th International Symposium on Management (INSYMA 2022)

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Factors Affecting Syndicated Loan Spreads in Indonesia, Thailand, and Vietnam

Authors
Jonathan Bryan1, Deddy Marciano1, *, Endang Ernawati1, James Bartle2
1University of Surabaya, Surabaya, Indonesia
2University of New South Wales, Kensington, Australia
*Corresponding author. Email: marciano@staff.ubaya.ac.id
Corresponding Author
Deddy Marciano
Available Online 5 December 2022.
DOI
10.2991/978-94-6463-008-4_15How to use a DOI?
Keywords
syndicated loan spreads; loan information; borrower characteristic
Abstract

This study aims to analyze the effect of loan information (i.e., number of lenders, loan amount, and loan maturity) and borrower characteristics (i.e., public, firm size, leverage, and profitability), as well as control variables such as country and year on syndicated loan, spread in public companies and private companies in Indonesia, Thailand, and Vietnam during the 2008–2018 period by calculating the All In Spread Drawn (AISD) of the syndicated loans over LIBOR. This study applied a quantitative approach through the ordinary least squares method on a sample of 389 observations. A total of 118 observations came from public companies, and 271 observations came from private companies. This study shows that syndicated loans given to private companies are more expensive than public companies. However, this can be minimized by increasing the loan exposure for private firms through a larger number of lenders. It can also be seen that public companies with larger assets, higher returns on equity, and borrowing with shorter terms will be subject to lower interest rates. The spreads for syndicated loans are the most expensive in Indonesia, followed by Vietnam and Thailand.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 19th International Symposium on Management (INSYMA 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
5 December 2022
ISBN
978-94-6463-008-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-008-4_15How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jonathan Bryan
AU  - Deddy Marciano
AU  - Endang Ernawati
AU  - James Bartle
PY  - 2022
DA  - 2022/12/05
TI  - Factors Affecting Syndicated Loan Spreads in Indonesia, Thailand, and Vietnam
BT  - Proceedings of the 19th International Symposium on Management (INSYMA 2022)
PB  - Atlantis Press
SP  - 108
EP  - 117
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-008-4_15
DO  - 10.2991/978-94-6463-008-4_15
ID  - Bryan2022
ER  -