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Strategic deviation and debt maturity structure

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  • Provaty, Sagira Sultana
  • Amin, Shabnaz
  • Hasan, Mostafa Monzur

Abstract

We examine the relationship between strategic deviation and debt maturity structure. Using a large sample of US publicly listed firms from 1981 to 2020, we find that strategic deviation is positively associated with short-term debt. We also find that this relationship is driven by both direct and indirect channels (information asymmetry and corporate governance channels). Our finding remains robust to a series of sensitivity analyses and endogeneity tests. Taken together, we show that strategic deviation has crucial effects on corporate financing decisions.

Suggested Citation

  • Provaty, Sagira Sultana & Amin, Shabnaz & Hasan, Mostafa Monzur, 2022. "Strategic deviation and debt maturity structure," Finance Research Letters, Elsevier, vol. 50(C).
    • Handle: RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322004962
    DOI: 10.1016/j.frl.2022.103317
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    Cited by:

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    3. Wen, Wen & Qiao, Fei & He, Ying, 2023. "Strategic deviation and corporate green innovation," Finance Research Letters, Elsevier, vol. 54(C).

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