Agree to Disagree: Within-Syndicate Conflict and Syndicated Loan Contracting

Recent studies show that dual holders—that is, institutions that simultaneously hold equity and debt of the same firm—internalize the shareholder-creditor conflict and lead to incentive alignment between the two parties (Jiang et al., 2010; Chava et al., 2017; Chu, 2018; Anton and Lin, 2020). However, mitigation of the shareholder-creditor conflict comes at the cost of […]