Posted in: Sustainable Banking

ECCE webinar by Gaby Contreras: Equator Principles Adoption: Peer Pressure or Piggybacking?


EVENT DATE: 16-04-14 | Webinar |

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Why do firms adopt voluntary guidelines, such as the Equator Principles? In this ECCE Webinar, Gaby Contreras answers this question for a market where firms cooperate: the worldwide syndicated loan market. This setting allows us to study the effects of peer pressure and piggybacking. As banks fear to be excluded from future and interesting deals they may succumb to peer pressure effects. On the other hand, through piggybacking firms free ride on others to benefit from reputational gains. The study accounts for social pressure, as banks are judged by the market for their actions leading to potential reputational damage. The findings show that piggybacking dominates explaining the slowing rate of adoption in the Equator Principles. However, within a network that is highly interconnected, repeated interactions moderate piggybacking. As a result, banks are eventually adopting the Equator Principles, explaining how the rate at which banks work together positively influences adoption rates. 

Title: Equator Principles Adoption: Peer Pressure or Piggybacking? 
Date: Wednesday, April 16, 2014
Time: 4:00 PM - 5:00 PM CEST  

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