Corporate Debt Maturity Structure: The Role of Firm Level and Institutional Determinants in Selected African Countries
No Thumbnail Available
Date
2017
Journal Title
Journal ISSN
Volume Title
Publisher
Taylor and Francis
Abstract
An appropriate debt maturity structure is essential for firms to enable them align asset
structure to liabilities to prevent a mismatch. This study investigates the role of firm-level and
institutional variables on debt maturity structure in selected African countries. Using panel
generalised method of moment that addresses endogeneity problem; our findings reveal a
dynamic process of adjustment to optimal debt maturity structure. Furthermore, firm-level
variables (leverage, asset structure and firm size) provide support for the contracting cost,
signaling and matching principle theories of debt maturity structure. Results of institutional
variables suggest that better developed institutions promote long-term debt maturity structures.
Description
Keywords
Debt maturity structure; contracting cost; matching principle; rule of law; regulatory quality