Firm Attributes and Government External Debt as Determinants of Corporate Short Debt Maturity in a Post-CPEC Scenario

Hussain Rana Yassir (), Xuezhou Wen, Hussain Haroon, Ahmad Ilyas, Irshad Hira and Malik Muhammad Yasir Hayat
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Hussain Rana Yassir: UE Business School, Division of Management and Administrative Sciences, University of Education Lahore, Pakistan.
Xuezhou Wen: School of Business, Jiangnan University, Wuxi, China.
Hussain Haroon: Malik Firoz Khan Noon Business School, University of Sargodha, Pakistan.
Ahmad Ilyas: UE Business School, Division of Management and Administrative Sciences, University of Education Lahore, Pakistan.
Irshad Hira: Department of Business and Management Sciences, Superior University, Sargodha, Pakistan.
Malik Muhammad Yasir Hayat: Department of Mathematics, Division of Science and Technology, University of Education Lahore, Lahore, Pakistan.

Zagreb International Review of Economics and Business, 2024, vol. 27, issue 1, 137-154

Abstract: The current study investigates the influence of firm attributes and government external debt upon the short debt maturity of non-financial firms listed at the Pakistan Stock Exchange (PSX) in a post-CPEC (China Pakistan Economic Corridor) scenario. By using firm-level panel data, estimations are made through the random effect model with robust standard errors at the level and with lagged independent variables. We dealt endogeneity concerns by employing the system-GMM approach to the complete data sample of 331 firms over a period ranging from 2013 to 2017 and also the post CPEC period ranging from 2015 to 2017. The risk and asset tangibility are strong negative predictors of short debt maturity in Pakistani listed firms. The external debt had a positive and significant role in defining short debt maturity. These results were consistent for both the entire data period and the post CPEC period.

Keywords: External Government Debt; Short Debt Maturity; Firm Attributes; CPEC (search for similar items in EconPapers)
JEL-codes: G32 H63 H81 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:zirebs:v:27:y:2024:i:1:p:137-154:n:1007

DOI: 10.2478/zireb-2024-0007

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