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Corporate Debt Maturity Choice in Emerging Financial Markets

  • Stephan, Andreas

    ()

    (Jönköping International Business School, DIW Berlin, CESIS Stockholm)

  • Talavera, Oleksandr

    (University of East Anglia)

  • Tsapin, Andriy

    (National University of Ostroh Academy)

This paper investigates the determinants of liability maturity choice in emerging markets using a unique panel of 4,500 Ukrainian rms during the period 2000-2006. Our estimates conrm the importance of agency costs, liquidity, signaling, and taxes for the liability term structure of rms operating in a transition economy. Firm creditworthiness and access to long-term nancing at bond markets are the key drivers of corporate debt structure. This study provides strong evidence that constrained and unconstrained companies react dierently on liquidity risk and, hence, pursue diferent debt maturity strategies.

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Paper provided by Jönköping International Business School in its series JIBS Working Papers with number 2010-2.

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Length: 37 pages
Date of creation: 17 Nov 2010
Date of revision:
Handle: RePEc:hhb:hjacfi:2010_002
Contact details of provider: Postal: Jönköping International Business School, P.O. Box 1026, SE-551 11 Jönköping, Sweden
Phone: 036-157700
Fax: 036-165069
Web page: http://www.jibs.hj.se/

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