What Explains the Declining Corporate Debt Maturity of Pakistani Firms? The Analysis of Demand and Supply-Side Factors (original) (raw)
Related papers
The determinants of corporate debt maturity structure: A case study of Pakistan
AFRICAN JOURNAL OF BUSINESS MANAGEMENT, 2012
This paper investigates the determinants of the maturity structure of Czech corporate debt. A theoretical section provides an overview of contemporary theories on corporate debt maturity structure. An empirical section describes an econometric model that shows that long-term debt increases with company size and leverage and asset maturity. The impact of growth options, collateralizable assets, corporate-tax rate, and company-level volatility proves statistically insignificant. Finally, the paper discusses the limitations of the results in terms of data, variables, and determinants.
Impact of Debt Maturity on Firm Performance Evidence from Pakistan
2020
The manuscript is articulated to check the impact of debt maturity on organization performance. In today's cut throat competition, organizations need high performance. The study tends to measure the effects of debt maturity over the organization performance. For this purpose, data was collected from non-financial scheduled firms in Pakistan stock exchange for the period of 2014-2018. To find the good results estimation techniques used were Stata11 software for regression analysis. The research found that operating cycle and growth have a considerable effect on the dependent variable i.e. debt maturity while asset maturity, size and tax have an insignificant effect on debt maturity. It is concluded that long term debt is better for the growth.
Determinants of Corporate Debt Maturity in Asia Pacific
2014
This study is aimed to analyze factors that determine debt maturity. Since the asymmetric information level in Asia Pacific is higher compare to U.S. and Europe, the debt maturity decision become riskier. This study is using 13 different regression model, all sample, listed and crisis, listed and non crisis, non listed and crisis, non listed and non crisis, listed with performance and crisis, listed with performance and non crisis, listed high leverage, listed high leverage and crisis, listed high leverage and non crisis, listed low leverage, listed low leverage and crisis, listed low leverage and non crisis. This paper investigates the determinants of debt maturity for all loan sample in Asia Pacific during 2006-2010, using ordinary least square method to support the results. Based on the research, lenders are proven unable to differentiate between good quality borrowers and bad quality borrowers. Thus, in terms of debt maturity policy, the risk is higher for lenders compare to bor...
Corporate Debt Maturity Structure The Role of Firm2017
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, signalling and matching principle theories of debt maturity structure. Results of institutional variables suggest that better developed institutions promote long-term debt maturity structures.
The study was intented to identify the determinants of the debt maturity structure of listed firms in Bombay Stock Exchange 500 index. For the analysis we have taken 321 firms during the period 2002-2011, comprising of a panel model with fixed effects. We also used GMM (1991) and GMM (1998) estimates of our analysis. The result of robustness tests confirms that past year debt maturity, leverage and growth opportunities are directly determined the debt maturity of Indian firms. Liquidity, effective tax and rate prime lending rate are negatively determining the debt maturity of Indian companies.
The Determinants of Corporate Debt Maturity for NSE-Listed Corporates
FIIB Business Review
The maturity structure of corporate debt is one of the significant financing choices that a firm must make simultaneously while deciding how to finance its operational and investment decisions. Even though the capital structure is one of the scrutinized topics of interest in the area of corporate finance literature, there are scarce studies investigating corporate debt maturity—even less so in the context of emerging markets. The choice of a suitable debt maturity structure is extremely relevant for firms as it can enable them to avoid mismatch by aligning assets in line with liabilities, address agency related problems, sidestep the ill effects of cost of capital and signal about the firms’ earning quality and value. The study investigates the firm-specific and macroeconomic determinants that are significant for a debt maturity structure of Indian corporate firms. A sample of 29 non-financial firms listed on the National Stock Exchange during the period 2008–2016 was taken to test ...
Firm and Macroeconomic Determinants of Debt: Pakistan Evidence
Procedia - Social and Behavioral Sciences, 2015
This study investigates the role of firm specific factors, macroeconomic factors, and firms' heterogeneity in determining the debt levels of non-financial listed firms of Pakistan. Study implies static panel data modeling using pooled OLS and fixed effect regression as estimation techniques, with two different proxies of debt. Profitability, tangibility, and size of the firm appear to affect debt level significantly across different proxies and different estimation techniques. Interest rate and inflation are significant determinants of debt in fixed effect estimation. Study also confirms the existence of firm specific influence on debt.
Firm and Country Determinants of Debt Maturity. International Evidence
SSRN Electronic Journal, 2014
This paper analyzes the effect of firm-and country-level determinants on debt maturity structure and how this effect varies across countries. Results for 39 countries indicate that firm-level variables such as asset maturity, size, firm quality and leverage affect debt maturity structure. While the efficiency of the legal system and the bank concentration show a positive relationship with debt maturity, the degree of investor protection and the weight of banks in the economy have a negative effect on firm debt maturity. However, these firm-and country-level determinants vary according to firm size, institutional and legal environment, and banking structure of the country. The higher the level of legal efficiency, the higher the fulfillment of the agency cost and signaling hypotheses and the lower the validity of the matching hypothesis.