IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v91y2024ics1057521923005458.html
   My bibliography  Save this article

Top management team stability and debt concentration

Author

Listed:
  • Yao, Wenyun
  • Yang, Hang
  • Shi, Xiulian
  • Song, Zilong

Abstract

We empirically examine the effect of top management team (TMT) stability on corporate debt concentration. Using a sample of A-share listed companies in China from 2003 to 2020, we show that higher TMT stability is associated with less concentrated debt structures. We propose that a stable TMT can reduce the risk and cost of coordination failures with creditors, thereby decreasing the cost of diversifying debt structures. Thus, firms with higher TMT stability tend to choose a lower debt concentration. Further analysis suggests that this relationship is stronger in samples with higher default risk, lower liquidation values, and lower accounting quality. This study contributes to the literature on TMT stability and corporate debt concentration and has implications in terms of changes to a firm's TMT.

Suggested Citation

  • Yao, Wenyun & Yang, Hang & Shi, Xiulian & Song, Zilong, 2024. "Top management team stability and debt concentration," International Review of Financial Analysis, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:finana:v:91:y:2024:i:c:s1057521923005458
    DOI: 10.1016/j.irfa.2023.103029
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521923005458
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2023.103029?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Top management team; Debt concentration; Default risk; Liquidation value;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:91:y:2024:i:c:s1057521923005458. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.