The determinants of corporate debt maturity: Evidence from UK firms

Research output: Contribution to journalArticle

31 Citations (Scopus)

Abstract

This paper investigates the empirical determinants of corporate debt maturity structure. This is done by testing several leading theoretical models of debt maturity structure using a cross-sectional data set of 321 non-financial UK firms. The evidence lends considerable support to the prediction that the impact of firm size on debt maturity is positive. The findings also provide support for the notion that firms match the maturity structure of their debt to that of their assets. The findings reveal that agency-related costs and volatility of firm value exert a negative impact on debt maturity. The empirical analysis provides no evidence that taxes affect debt maturity structure. Finally, the empirical analysis is not supportive of the signalling hypothesis that firms use their debt maturity structure to signal information to the market.

LanguageEnglish
Pages19-24
Number of pages6
JournalApplied Financial Economics
Volume12
Issue number1
DOIs
Publication statusPublished - 19 Feb 2002
Externally publishedYes

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Debt maturity
Debt maturity structure
Corporate debt
Empirical analysis
Prediction
Testing
Costs
Firm size
Debt
Signaling hypothesis
Assets
Firm value
Tax
Maturity
Cross-sectional data

Cite this

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The determinants of corporate debt maturity : Evidence from UK firms. / Ozkan, Aydin.

In: Applied Financial Economics, Vol. 12, No. 1, 19.02.2002, p. 19-24.

Research output: Contribution to journalArticle

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