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Shared leadership and information production: how co-lead arrangements reshape syndicated loan governance

Year: 2026

Type: article

Abstract: Using syndicated loan data, we examine how co-lead arrangements are associated with information production and monitoring. Co-lead loans exhibit greater sensitivity of loan spreads to hard-to-observe future borrower risk, consistent with more informative ex ante pricing. Co-lead loans are also associated with fewer covenant violations when lead arrangers are highly reputable. These associations are generally stronger for informationally opaque borrowers. Overall, the evidence is consistent with shared leadership facilitating the incorporation of borrower risk into loan pricing and strengthening monitoring when arrangers have strong reputational incentives.

Source: Journal of International Financial Markets Institutions and Money

DOI: 10.1016/j.intfin.2026.102408

Authors: Han Zhou, Chune Young Chung, Doojin Ryu

Institutions: Monash University Malaysia, Ton Duc Thang University, Chung-Ang University, Sungkyunkwan University

Language: English

Topic: Credit Risk and Financial Regulations

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,930

OpenAlex ID: W7222000900

FWCI:

Cites: 44

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