A Comparative Study on the Relationship of Debt Maturity Structure and Investment in Korea and China

This study focuses on the relationship between board vigilance and financial distress in non-financial firms listed on the Pakistan Stock Exchange (PSX). The mediating role of leverage structure and moderating role of asset tangibility is also studied following Baron and Kenney’s approach. The study analyzed the data of 284 firms ranging from 2013 to 2017 by using ordinary least squares (OLS) and panel corrected standard errors (PCSE) regressions. The study revealed that the debt maturity structure mediates the relationship between board independence and financial distress and between CEO non-duality and financial distress but the capital structure did not mediate any of the stated relationships. Similarly, asset tangibility negatively moderated the relationship between debt maturity and financial distress. However, there was no such moderation detected between the relationship of capital structure and financial distress. The results remained consistent throughout the analysis with both regression techniques. These results suggest using more long-term debt in debt maturity structure to have control over financial distress and also to reduce the reliance on non-productive tangible assets in the asset structure of non-financial firms of Pakistan.

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Debt and financial performance of SMEs: The missing role of debt maturity structure.

Corporate Ownership and Control ◽

10.22495/cocv10i3c3art2 ◽

2013 ◽

Vol 10 (3) ◽

pp. 354-365 ◽

Cited By ~ 6

Author(s):

Hayam Wahba

Keyword(s):

Financial Performance ◽

Opposite Effect ◽

Debt Maturity ◽

Random Effects Model ◽

Short Term ◽

Debt Maturity Structure ◽

Maturity Structure ◽

The Relationship

This paper focuses on an important issue, which has generally received less attention in SMEs literature, being the effect of debt maturity structure on financial performance. The random effects model, as a panel data technique, is used to examine the relationship between debt and various measures of financial performance. The results reveal that it is not the level of leverage that determines financial performance, but rather the debt maturity structure. Specifically, the findings demonstrate that short-term debt and long-term debt have an opposite effect on financial performance and therefore tend to cancel out. This is the first study, to the best of knowledge, which offers empirical evidence regarding debt maturity structure not only in SMEs context, but also from an Egyptian perspective.

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The effect of franchising on debt maturity in the US restaurant industry

Tourism Economics ◽

10.1177/1354816616672802 ◽

2016 ◽

Vol 22 (6) ◽

pp. 1404-1422 ◽

Cited By ~ 4

Author(s):

Kwanglim Seo

Keyword(s):

Restaurant Industry ◽

Debt Maturity ◽

Corporate Debt ◽

Publicly Traded ◽

Short Term ◽

Debt Maturity Structure ◽

Maturity Structure ◽

The Us ◽

Restaurant Firms ◽

The Relationship

With franchising as an efficient means of growth and expansion, this study aims to explore how franchising can influence corporate debt maturity structure in the US restaurant industry. The purpose of this study is to investigate (1) the effect of franchising on debt maturity structure, (2) the relationship between leverage and short-term debt, and (3) the moderating effect of franchising on the relationship between short debt maturity and leverage in the US restaurant industry. Analyzing panel data on publicly traded US restaurant firms, this study showed that franchising could be an important determinant of the maturity structure of corporate debt. Empirical evidence suggests that restaurant firms pursuing growth and expansion through franchising should take into consideration the effect of franchising on the debt maturity structure when making capital structure decisions.

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