This paper presents a theory to explain the economic value in tranching of syndicated loans. Over 35% of syndicated loans originated in the nineties had multiple tranches. These tranches were either for different types of loans (example, revolving and term loans) or had different terms and...

This paper recognizes the importance of tranching and establishes tranching as an integral component of a syndicated loan structure. We present a theory to explain the economic value of tranching and show that riskier firms are more likely to take loans with multiple facilities and therefore,...

This paper presents a theory to explain the economic value of tranching and provides empirical evidence to support the theoretical implications. I show that riskier firms are more likely to take loans with multiple tranches. Therefore, the average credit spread on a syndicated loan with multiple...

In general equilibrium under constant returns to scale and perfect competition the normative theory of international trade is examined for a monetary, not a barter, economy. Persons exhibit flow demand for real balances just as they do for commodities because money provides well-being salient...

Using US NLSY panel data set, staggered every 2 years from 2000 to 2006 for a cross section of 12 686 individuals, we investigate the effect of computer skills on wages. We use the definition of computer skills as having a personal computer with Microsoft Windows at home. Unlike most previous...

We investigate how firm-specific certification practices through corporate governance can reduce perceived ambiguity and thus enhance liquidity of a firm in the stock market. We show that better corporate governance helps reduce ambiguity. In addition, a reduction in ambiguity is significantly...