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Debt Maturity, Ownership Concentration, and Firm Efficiency

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  • Samuele Murtinu

    (Università Cattolica del Sacro Cuore)

Abstract

I study the relationship between debt maturity and agency conflicts between controlling and minority shareholders in unlisted firms. Exploiting cross-province variance in the development of local credit markets, I find that the monitoring effect of short-term bank debt is more effective in firms with less concentrated ownership structures.

Suggested Citation

  • Samuele Murtinu, 2015. "Debt Maturity, Ownership Concentration, and Firm Efficiency," Economics Bulletin, AccessEcon, vol. 35(4), pages 2610-2616.
    • Handle: RePEc:ebl:ecbull:eb-15-00486
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    References listed on IDEAS

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    1. Stijn Claessens & Simeon Djankov & Joseph P. H. Fan & Larry H. P. Lang, 2002. "Disentangling the Incentive and Entrenchment Effects of Large Shareholdings," Journal of Finance, American Finance Association, vol. 57(6), pages 2741-2771, December.
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    Cited by:

    1. Ahmed Aboud & Ahmed Diab, 2022. "Ownership Characteristics and Financial Performance: Evidence from Chinese Split-Share Structure Reform," Sustainability, MDPI, vol. 14(12), pages 1-18, June.

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    More about this item

    Keywords

    Ownership concentration; efficiency; agency cost; debt maturity; monitoring; bank; ownership structure; firm performance; corporate governance; financial debt; unlisted firm; local credit market; endogeneity; agency conflict; entrepreneurial firm; owner-managed firm; minority shareholder; corporate finance; capital structure;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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