Corporate Debt Maturity Profiles
University of Illinois at Urbana-Champaign - Department of Finance
Boston University Questrom School of Business
Vienna University of Economics and Business
July 15, 2015
We study a new aspect of a company's debt structure, namely the profile of its maturity dates. Based on dispersion measures of a firm's debt maturities, we find that these measures vary substantially across firms and time. Newly issued bond maturities complement pre-existing bond maturities, so firms spread out maturity dates over time to maintain or increase dispersion of maturity profiles. Using an exogenous shock to rollover risk, we find a significant increase in maturity dispersion for firms which need to roll over expiring bonds. Finally, firms actively manage their maturity profiles and adjust toward target levels, which depend on firm characteristics.
Number of Pages in PDF File: 47
Keywords: Capital Structure, Debt Structure, Debt Maturity
JEL Classification: G13, G31, G32, G33
Date posted: November 30, 2011 ; Last revised: July 17, 2015
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