Price Discovery and Dissemination of Private Information by Loan Syndicate Participants. Robert M. Bushman Abbie J. Smith Regina Wittenberg-Moerman. Research questions .
Robert M. Bushman
Abbie J. Smith
Objective: To better understand the relation between information flows and the price discovery process in the loan and stock markets.
Relationship lending (Bharath et al., 2006, Sufi, 2007)
Reputation of the arranger of syndication (Jones et al., 2005, Dennis and Mullineaux, 2000, Lee and Mullineaux, 2004, Sufi, 2007)
Covenants (Allen et al., 2004, Standard & Poor’s, 2007, Bradley and Roberts, 2004).
A higher proportion of the total cumulative abnormal return for the “fast” price discovery portfolio will occur earlier in the period relative to the “slow” price discovery portfolio.