Debt maturity across firm types: Evidence from a major developing economy
Cuneyt Orman () and
Bülent Köksal ()
Emerging Markets Review, 2017, vol. 30, issue C, 169-199
Existing literature provides little guidance on whether various debt maturity theories are useful in understanding the debt maturity choices of firms that are privately-held, small, and/or outside the manufacturing industry in developing economies. This paper conducts a comparative test of the major debt maturity theories using a firm-level dataset that covers a wide variety of firm types in a major developing economy, Turkey. Our findings provide considerable support for the liquidity risk, agency, and maturity-matching theories. The macroeconomic environment also has an important impact on debt maturity. The evidence for the signaling and tax theories, however, is weak at best.
Keywords: Debt maturity structure; Nonfinancial firms; Firm heterogeneity; Developing economy; Turkey (search for similar items in EconPapers)
JEL-codes: G3 G32 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:30:y:2017:i:c:p:169-199
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