The Determinants of Corporate Debt Maturity Structure

J. OF BUSINESS, Vol. 69 No. 3, July 1996

Posted: 2 Jul 1998

See all articles by Mark Hoven Stohs

Mark Hoven Stohs

University College Dublin

David C. Mauer

affiliation not provided to SSRN

Abstract

We examine the empirical determinants of debt maturity structure using a maturity structure measure that incorporates detailed information about all of a firm's liabilities. We find that larger, less risky firms, with longer-term asset maturities use longer-term debt. Additionally, debt maturity varies inversely with earnings surprises and a firm's effective tax rate, but there is only mixed support for an inverse relation with growth opportunities. We find strong support for the prediction of a non-monotonic relation between debt maturity and bond rating: firms with high or very low bond ratings use shorter-term debt.

JEL Classification: G30

Suggested Citation

Stohs, Mark Hoven and Mauer, David C., The Determinants of Corporate Debt Maturity Structure. J. OF BUSINESS, Vol. 69 No. 3, July 1996, Available at SSRN: https://ssrn.com/abstract=7338

Mark Hoven Stohs

University College Dublin

Belfield
Dublin 4, 4
Ireland

David C. Mauer (Contact Author)

affiliation not provided to SSRN

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