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Influence of Debt Maturity on Firm Performance: An International Comparison

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  • Ben Said Hatem

Abstract

This paper manipulate the effect of capital structure maturity on firm performance. Debt maturity is measured by three ratios (the long term capital structure, the short term capital structure and total debt ratio). We test a sample consisting of 116 firms from Malaysia and 92 firms from Mexico over a period of 7 years from 2005 to 2011. We could not find evidence on the effect of the long term capital structure ratio on firm performance for specification 5 for Mexico. However, firms with higher short term capital structure ratio, are less profitable. This result is valid for firms from Malaysia and Mexico. The results of total debt ratio are mixed. We conclude to a positive effect for specification 4 for Malaysia and a negative effect for other specifications for Malaysia and Mexico.

Suggested Citation

  • Ben Said Hatem, 2017. "Influence of Debt Maturity on Firm Performance: An International Comparison," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(5), pages 106-113, May.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:5:p:106-113
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    References listed on IDEAS

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    3. Roy L. Simerly & Mingfang Li, 2000. "Environmental dynamism, capital structure and performance: a theoretical integration and an empirical test," Strategic Management Journal, Wiley Blackwell, vol. 21(1), pages 31-49, January.
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    5. Wiwattanakantang, Yupana, 1999. "An empirical study on the determinants of the capital structure of Thai firms," Pacific-Basin Finance Journal, Elsevier, vol. 7(3-4), pages 371-403, August.
    6. repec:bla:jfinan:v:53:y:1998:i:5:p:1443-1493 is not listed on IDEAS
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    Cited by:

    1. Sunday Nosa UGBOGBO (Ph.D) & Sunday Nosa UGBOGBO (Ph.D), 2023. "Capital Structure and Corporate Financial Distress of Quoted Non-Financial Firms in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(6), pages 1302-1314, June.

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    More about this item

    Keywords

    long term debt ratio; short term debt ratio; total debt ratio; maturity;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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