Corporate debt maturity choice in emerging financial markets

Andreas Stephan; Oleksandr Talavera; Andriy Tsapin

doi:10.1016/j.qref.2010.12.003

Corporate debt maturity choice in emerging financial markets

Andreas Stephan, Oleksandr Talavera, Andriy Tsapin

Research output: Contribution to journal › Article › peer-review

32 Citations (Scopus)

Abstract

This paper investigates the determinants of liability maturity choice in emerging markets using a unique panel of 4500 Ukrainian firms during the period 2000–2006. Our estimates confirm the importance of agency costs, liquidity, signaling, and taxes for the liability term structure of firms operating in a transition economy. Firm creditworthiness and access to long-term financing at bond markets are the key drivers of corporate debt structure. This study provides strong evidence that constrained and unconstrained companies react differently on liquidity risk and, hence, pursue different debt maturity strategies.

Original language	English
Pages (from-to)	141-151
Journal	The Quarterly Review of Economics and Finance
Volume	51
Issue number	2
Early online date	25 Dec 2010
DOIs	https://doi.org/10.1016/j.qref.2010.12.003
Publication status	Published - May 2011

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10.1016/j.qref.2010.12.003

Cite this

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title = "Corporate debt maturity choice in emerging financial markets",

abstract = "This paper investigates the determinants of liability maturity choice in emerging markets using a unique panel of 4500 Ukrainian firms during the period 2000–2006. Our estimates confirm the importance of agency costs, liquidity, signaling, and taxes for the liability term structure of firms operating in a transition economy. Firm creditworthiness and access to long-term financing at bond markets are the key drivers of corporate debt structure. This study provides strong evidence that constrained and unconstrained companies react differently on liquidity risk and, hence, pursue different debt maturity strategies.",

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AB - This paper investigates the determinants of liability maturity choice in emerging markets using a unique panel of 4500 Ukrainian firms during the period 2000–2006. Our estimates confirm the importance of agency costs, liquidity, signaling, and taxes for the liability term structure of firms operating in a transition economy. Firm creditworthiness and access to long-term financing at bond markets are the key drivers of corporate debt structure. This study provides strong evidence that constrained and unconstrained companies react differently on liquidity risk and, hence, pursue different debt maturity strategies.

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DO - 10.1016/j.qref.2010.12.003

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JO - Quarterly Review of Economics and Finance

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