Debt maturity, financial crisis and corporate performance in GCC countries: a dynamic-GMM approach

Rami Zeitun () and Munshi Haq ()

Afro-Asian Journal of Finance and Accounting, 2015, vol. 5, issue 3, 231-247

Abstract: This study investigates the effect of debt financing and debt maturity on corporate performance, using evidence from Gulf Cooperation Council countries (GCC): Qatar, Oman, Kuwait, Kingdom of Saudi Arabia, United Arab Emirates, and Bahrain. The study uses a dynamic GMM approach for an unbalanced sample of 400 firms for the period 2004-2012. The study also investigates the effects of the financial crisis on the significance of long-term and short-term debt financing as determinants of firms' performance. Our findings indicate that the long-term and short-term debt financing affect firms' performance negatively. The results also show that the economic importance of short-term debt increases as a determinant of firms' performance after crisis, while the effect of long-term debt decreases.

Keywords: debt structure; debt maturity; debt financing; firm performance; financial crisis; corporate performance; GCC countries; Gulf Cooperation Council; Qatar; Oman; Kuwait; Saudi Arabia; United Arab Emirates; UAE; Bahrain; dynamic GMM; generalised method of moments. (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:afasfa:v:5:y:2015:i:3:p:231-247

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