Stock liquidity and corporate debt maturity structure: Evidences from Indian firms

2021 ◽  
Author(s):  
Nufazil Altaf Ahangar
Keyword(s):  
Debt Maturity ◽  
Corporate Debt ◽  
Stock Liquidity ◽  
Debt Maturity Structure ◽  
Maturity Structure

scholarly journals Corporate Debt Maturity Structure: The Role of Firm Level and Institutional Determinants in Selected African Countries

2017 ◽  
Vol 46 (4) ◽  
pp. 422-440 ◽  
Author(s):  
Oyebola Fatima Etudaiye-Muhtar ◽  
Rubi Ahmad ◽  
Bolaji Tunde Matemilola
Keyword(s):  
Debt Maturity ◽  
Corporate Debt ◽  
African Countries ◽  
Firm Level ◽  
Debt Maturity Structure ◽  
Institutional Determinants ◽  
Maturity Structure

Does Stock Liquidity Affect Corporate Debt Maturity Structure?

2020 ◽  
pp. 2150005
Author(s):  
Joseph M. Marks ◽  
Chenguang Shang
Keyword(s):  
Stock Market ◽  
Debt Maturity ◽  
Market Liquidity ◽  
Stock Liquidity ◽  
Yield Spreads ◽  
Debt Maturity Structure ◽  
Bond Yield ◽  
Maturity Structure ◽  
Stock Market Liquidity ◽  
The Impact

We show an inverse relation between the use of short-term debt and stock market liquidity. This finding is robust to a battery of control variables, alternative measures of the key variables, and various identification strategies. A difference-in-difference (DiD) approach suggests that the relation between debt maturity structure and stock liquidity may be causal. The impact of stock liquidity on debt maturity is stronger in the presence of large institutional holdings and when borrowers are subject to greater refinancing risk. We also provide evidence that firms with liquid stock tend to issue longer-term bonds and enjoy lower bond yield spreads. Overall, our results support the view that the governance function of stock market liquidity reduces the necessity of debt market monitoring, which allows firms to shift toward longer-term debt to avoid the costs and risk of frequent refinancing.

The Determinants of Corporate Debt Maturity Structure

1996 ◽  
Vol 69 (3) ◽  
pp. 279 ◽  
Author(s):  
Mark Hoven Stohs ◽  
David C. Mauer
Keyword(s):  
Debt Maturity ◽  
Corporate Debt ◽  
Debt Maturity Structure ◽  
Maturity Structure

scholarly journals Time-varying managerial overconfidence and corporate debt maturity structure

2017 ◽  
Vol 24 (2) ◽  
pp. 157-181 ◽  
Author(s):  
Ali Ataullah ◽  
Andrew Vivian ◽  
Bin Xu
Keyword(s):  
Debt Maturity ◽  
Corporate Debt ◽  
Time Varying ◽  
Debt Maturity Structure ◽  
Maturity Structure ◽  
Managerial Overconfidence

The Determinants of Corporate Debt Maturity for NSE-Listed Corporates

2018 ◽  
Vol 7 (1) ◽  
pp. 43-56 ◽  
Author(s):  
Anjala Kalsie ◽  
Aishwarya Nagpal
Keyword(s):  
Fixed Effects ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Wholesale Price ◽  
Jel Classification ◽  
Debt Maturity ◽  
Corporate Debt ◽  
Debt Maturity Structure ◽  
Maturity Structure ◽  
Earning Quality

The maturity structure of corporate debt is one of the significant financing choices that a firm must make simultaneously while deciding how to finance its operational and investment decisions. Even though the capital structure is one of the scrutinized topics of interest in the area of corporate finance literature, there are scarce studies investigating corporate debt maturity—even less so in the context of emerging markets. The choice of a suitable debt maturity structure is extremely relevant for firms as it can enable them to avoid mismatch by aligning assets in line with liabilities, address agency related problems, sidestep the ill effects of cost of capital and signal about the firms’ earning quality and value. The study investigates the firm-specific and macroeconomic determinants that are significant for a debt maturity structure of Indian corporate firms. A sample of 29 non-financial firms listed on the National Stock Exchange during the period 2008–2016 was taken to test the hypothesis. Employing fixed effects panel data analysis, the study provides an empirical evidence that firm size, liquidity, asset maturity and base rate have significant effects on debt maturity choice in the Indian context, whereas tax effects, growth rate, firm quality and wholesale price index are not significantly related to the debt maturity structure. JEL Classification: C23, G20, G32

scholarly journals Determinants of corporate debt maturity: Evidence from the consumer goods sector in Vietnam

2021 ◽  
Vol 18 (3) ◽  
pp. 175-182
Author(s):  
Thi Van Trang Do
Keyword(s):  
Capital Structure ◽  
Consumer Goods ◽  
Stock Exchange ◽  
Generalized Least Squares ◽  
Debt Maturity ◽  
Corporate Debt ◽  
Macroeconomic Policies ◽  
Macroeconomic Factors ◽  
Debt Maturity Structure ◽  
Maturity Structure

Debt maturity structure plays an important role in enterprises’ capital structure policies, and debt maturity varies from industry to industry. The paper investigates the determinants that affect the debt maturity structure of listed firms in the consumer goods industry from 2009 to 2019. The data is collected from consumer goods companies listed on the Vietnam Stock Exchange. The feasible generalized least squares (FGLS) estimation is demonstrated to consider not only micro but also macroeconomic variables that have influenced the corporate debt maturity policy. The empirical results show that five microeconomic factors, such as capital structure, asset structure, asset liquidity, profitability, and firm size, have influenced the debt maturity and are statistically significant. Meanwhile, macroeconomic factors such as inflation rate and credit growth have significantly affected the corporate debt maturity. Finally, the paper provides some suggestions for financial managers on the optimal corporate debt maturity in the consumer goods sector and recommendations for policy-makers when implementing macroeconomic policies.

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