What is it about?
The article shows the influence of firm- and country-level determinants on debt maturity structure for 39 countries during the period 1995-2012. The role of efficiency of the legal system, protection of creditors' rights and banking structure are considered, distinguishing their role for small and large firms.
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Why is it important?
Our results indicate that the effect of bank concentration on corporate debt maturity is particularly evident in countries with low institutional quality, in line with the substitutive role of institutional quality and bank concentration in reducing agency costs and information asymmetries. The results also reveal that bank concentration and the weight of banks in the financing of the private sector have a greater effect on debt maturity in smaller firms as these firms are more dependent on bank financing.
Perspectives
Are determinants of debt maturity country-dependent?
Victor Gonzalez
Universidad de Oviedo
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This page is a summary of: Firm and country determinants of debt maturity: New international evidence, International Finance, October 2017, Wiley,
DOI: 10.1111/infi.12116.
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