Debt Maturity and the Characteristics of Ownership Structure: An Empirical Investigation of UK Firms

Maria-Teresa Marchica

Discussion Papers from Department of Economics, University of York

Abstract: This work investigates the relationship between debt maturity and the characteristics of ownership in a sample of 700 UK non-financial listed firms for the period 1991-2001. The reported results suggest that there is a significant U-shaped relationship between short-term debt and managerial ownership, which seems to be robust when we analyse the debt decisions of high leverage firms. Moreover, we provide evidence of a significant negative relation between short-term debt and large external shareholdings. Our results tend also to support the hypothesis that the identity of large non-managerial shareholders matters in debt maturity choices. Finally, the analysis reveals that large amounts of bank debt in the capital structure induce firms to have long-term credit, but this effect may be moderate when firms deal with multiple banks.

Keywords: Debt maturity structure; ownership and control structure; panel data; GMM (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fin
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.york.ac.uk/media/economics/documents/discussionpapers/2005/0529.pdf Main text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:yor:yorken:05/29

Access Statistics for this paper

More papers in Discussion Papers from Department of Economics, University of York Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom. Contact information at EDIRC.
Bibliographic data for series maintained by Paul Hodgson ().