Debt maturity: What do economists say? What do CFOs say?

Mitchell Berlin ()

Business Review, 2006, issue Q1, pages 3-10

Abstract: Mitchell Berlin discusses recent theories of how firms choose their debt maturity. Some of these theories are very useful for explaining how chief financial officers (CFOs) choose the maturity of their firms’ debt. However, CFOs seem to believe that they can predict future interest rates and time their borrowings accordingly, and this behavior fundamentally conflicts with most economic theories.

Keywords: Debt; management (search for similar items in EconPapers)
Date: 2006

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