The Determinants of Corporate Debt Maturity Structure

Publication Date

7-2-1998

Abstract

We examine the empirical determinants of debt maturity structure using a maturity structure measure that incorporates detailed information about all of a firm's liabilities. We find that larger, less risky firms, with longer-term asset maturities use longer-term debt. Additionally, debt maturity varies inversely with earnings surprises and a firm's effective tax rate, but there is only mixed support for an inverse relation with growth opportunities. We find strong support for the prediction of a non-monotonic relation between debt maturity and bond rating: firms with high or very low bond ratings use shorter-term debt.

Document Type

Article

Disciplines

Finance

Source

SMU Cox School of Business Research Paper Series

Language

English

Link to Full Text

Share

COinS