Corporate debt maturity profiles

Jaewon Choi, Dirk Hackbarth and Josef Zechner

Journal of Financial Economics, 2018, vol. 130, issue 3, 484-502

Abstract: We study a novel aspect of a firm’s capital structure, namely, the profile of its debt maturity dates. In a simple theoretical framework we show that the dispersion of debt maturities constitutes an important dimension of capital structure choice, driven by firm characteristics and debt rollover risk. Guided by these predictions we establish two main empirical results. First, using an exogenous shock to rollover risk, we document a significant increase in maturity dispersion for firms that need to roll over maturing debt. Second, we find strong support that maturities of newly issued debt are influenced by pre-existing maturity profiles.

Keywords: Capital structure; Debt structure; Debt maturity (search for similar items in EconPapers)
JEL-codes: G13 G31 G32 G33 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (42)

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Working Paper: Corporate Debt Maturity Profiles (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinec:v:130:y:2018:i:3:p:484-502

DOI: 10.1016/j.jfineco.2018.07.009

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