STRUCTURE OF DEBT MATURITY ACROSS FIRM TYPES

Cuneyt Orman () and Bülent Köksal

No 1504, IPEK Working Papers from Ipek University, Department of Economics

Abstract: We investigate if and when the leading theories of debt maturity are useful in understanding the maturity choices of non nancial firms in a major developing economy, Turkey. Unlike most research, we use a dataset that provides financial information on not only large, publicly-traded firms but also small, privately-held firms across a wide variety of industries. Our strongest finding is that firms that have high leverage also have long debt maturity. Size, asset maturity, and credit quality are also important, although results depend on the type of firm group considered. The stability of the economic environment as measured by in ation and interest rate volatility also in uences debt maturity decisions. Our findings are broadly consistent with the liquidity risk theory. The agency theory is also partially useful in understanding firms' maturity decisions, particularly for medium- and largesized, publicly-traded firms. The signaling theory is most useful when the sample consists of large, publicly-traded firms. We find little evidence that taxes matter for maturity decisions. Our findings also provide some evidence that borrower-lender relationships matter for debt maturity structures.

Keywords: Debt maturity structure; nonfinancial firms; Turkey (search for similar items in EconPapers)
JEL-codes: G3 G32 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2015-07
New Economics Papers: this item is included in nep-ara, nep-cfn and nep-cwa
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://econpapers.ipek.edu.tr/IpekWParchives/wp2015/wp1504OrmanKoksal.pdf First version, 2015 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to econpapers.ipek.edu.tr:80 (This is usually a temporary error during hostname resolution and means that the local server did not receive a response from an authoritative server. )

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ipk:wpaper:1504

Access Statistics for this paper

More papers in IPEK Working Papers from Ipek University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Levent Bulut ( this e-mail address is bad, please contact ).