Debt Maturity Structure and Firm Investment Journal Articles

abstract

• This study shows that the maturity structure of a firm’s debt has a significant impact on its investment decisions. We show, after controlling for the effect of the overall level of leverage, that a higher percentage of long-term debt in total debt significantly reduces investment for firms with high growth opportunities. In contrast, the correlation between debt maturity and investment is not significant for firms with low growth opportunities. The results are strong at the firm level and at the business segment level. These results hold even after controlling for the endogeneity problem inherent in the relationship between total leverage, the maturity composition of leverage, and investment.

authors

• Aivazian, Varouj A
• Ge, Ying
• Qiu, Jiaping

status

• published 

publication date

• December 2005

has subject area

• 1502 Banking, Finance and Investment (FoR)
• Finance (Science Metrix)

published in

• Financial Management  Journal

keywords

• 35 Commerce, Management, Tourism and Services
• 3501 Accounting, Auditing and Accountability
• 3502 Banking, Finance and Investment
• 3507 Strategy, Management and Organisational Behaviour

Digital Object Identifier (DOI)

• 10.1111/j.1755-053x.2005.tb00120.x

start page

• 107

end page

• 119

volume

• 34

issue

• 4