scholarly journals Debt maturity structure and investment decisions: Evidence of listed companies on Vietnam’s stock market

2022 ◽  
Vol 10 (1) ◽  
Author(s):  
Trang Van Thi Do ◽  
Duong Thuy Phan
2020 ◽  
pp. 2150005
Author(s):  
Joseph M. Marks ◽  
Chenguang Shang

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.


2004 ◽  
Vol 85 (2) ◽  
pp. 195-200 ◽  
Author(s):  
Prasanna Gai ◽  
Hyun Song Shin

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