Deddy Marciano

Asymmetry Information and Diversification Effect on Loan Pricing in Asia Pacific Region 2006-2010

Purpose of this study is to test the asymmetry information influence towards lead arranger and participant in syndicated loans. In syndicated loans, lead arranger are responsible in the loan establishment and act as intermediary between borrower and syndicated members. It cause participant to be highly dependent to the lead arranger. The theory predicts that the higher asymmetry information between lead arranger and participant will cause participant to expect a higher loan pricing, and a bigger lead share will reduce this effect. Conversely, a bigger lead share will resulted in a higher monitoring risk and credit risk for the lead arranger, which cause lead arranger to expect a higher loan pricing. Therefore, the establishment of loan pricing are affected by two opposite effect, asymmetry information effect (participant pricing) and diversification effect (lead pricing).This study uses two stage least squares (2SLS) to determine the existence of asymmetry information effect and diversification effect in loan pricing. This study used a sample of the entire LIBOR-based lending in Asia Pacific region for the period 2006-2010.This research shown that diversification effect indeed affecting the loan pricing in Asia Pacific, while asymmetry information effect in not proven. This is because Asia Pacific loans have a high average lead share (75%) and most of the loans have more than one lead arranger. The study also found that lenders tend to consider the economy conditions of a nation and previous relationship with the borrower than the financial performance of each borrower.

INTERDEPENDENCY BETWEEN INTERNATIONALIZATION, FIRM PERFORMANCE AND CORPORATE GOVERNANCE

The purpose of this research was to identify the interdependency between internationalization, performance and corporate governance. Data used by this paper were from financial statement information of manufacturing companies listed on Indonesian Stock Exchange over period 2011-2015. Pooling data were applied for a sample which contains 84 manufacturing companies with five years data. This paper also ap-plied Two Stages Regression as a statistical tool to identify the relationship between these three main va-riables. This research found significant interdependency relations between internationalization, performance, and corporate governance of manufacturing companies listed on Indonesia Stock Exchange.

The Effect of Corruption Perception Index and Country Risk Index on Syndicated Loan Establishment and Structure in Asia 1999-2003

This paper tests whether the corruption perception index (CPI), and country risk index, both being macro economic variables, could affect the lead arranger decision for syndicated loans or the size allocation for syndicated loans.In this research, we use logit methodology to analyze the lead arranger decision to approve a syndicated loans application. To analyze the size determination, we use tobit model analysis. The sample for this research came from all recorded loan transaction in Asia during the period 1999-2003. To strenghten the research analysis, we also apply robustnest check with an ordinary least square method.From this research, it is showed that the lead arranger consider their reputation and certification effect as an important factor that lead them to prefer a low risk syndicated loans. For size determintation, lead arranger will decide larger size for a higher risk loan, since they expect a higher return as a risk compensation for the investment.