Strategic deviation and debt maturity structure

Sagira Sultana Provaty, Shabnaz Amin and Mostafa Monzur Hasan

Finance Research Letters, 2022, vol. 50, issue C

Abstract: We examine the relationship between strategic deviation and debt maturity structure. Using a large sample of US publicly listed firms from 1981 to 2020, we find that strategic deviation is positively associated with short-term debt. We also find that this relationship is driven by both direct and indirect channels (information asymmetry and corporate governance channels). Our finding remains robust to a series of sensitivity analyses and endogeneity tests. Taken together, we show that strategic deviation has crucial effects on corporate financing decisions.

Keywords: Strategic deviation; debt maturity; information asymmetry; corporate governance (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322004962

DOI: 10.1016/j.frl.2022.103317

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