The Maturity Structure of Corporate Debt

Posted: 3 May 2000

See all articles by Michael J. Barclay

Michael J. Barclay

University of Rochester - Simon School (Deceased)

Clifford W. Smith

Simon Graduate School of Business, University of Rochester

Abstract

We provide an empirical examination of the determinants of corporate debt maturity. Our evidence offers strong support for the contracting-cost hypothesis. Firms that have few growth options are large, or are regulated have more long-term debt in their capital structure. We find little evidence that firms use the maturity structure of their debt to signal information to the market. The evidence is consistent, however, with the hypothesis that firms with larger information asymmetries issue more short- term debt. We find no evidence that taxes affect debt maturity.

JEL Classification: G32

Suggested Citation

Barclay, Michael J. and Smith, Clifford W., The Maturity Structure of Corporate Debt. Available at SSRN: https://ssrn.com/abstract=6205

Michael J. Barclay (Contact Author)

University of Rochester - Simon School (Deceased)

N/A

Clifford W. Smith

Simon Graduate School of Business, University of Rochester ( email )

Carol Simon Hall 3-202C
Rochester, NY 14627
United States
585-275-3217 (Phone)
585-442-6323 (Fax)

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