Corporate debt maturity profiles

Jaewon Choi, Dirk Hackbarth, Josef Zechner

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

We study a novel aspect of a firm's capital structure, namely, the profile of its debt maturity dates. In a simple theoretical framework we show that the dispersion of debt maturities constitutes an important dimension of capital structure choice, driven by firm characteristics and debt rollover risk. Guided by these predictions we establish two main empirical results. First, using an exogenous shock to rollover risk, we document a significant increase in maturity dispersion for firms that need to roll over maturing debt. Second, we find strong support that maturities of newly issued debt are influenced by pre-existing maturity profiles.

Original languageEnglish
Pages (from-to)484-502
Number of pages19
JournalJournal of Financial Economics
Volume130
Issue number3
DOIs
Publication statusPublished - 2018 Dec

Fingerprint

Maturity
Corporate debt
Debt maturity
Rollover
Debt
Capital structure
Firm characteristics
Prediction
Exogenous shocks
Empirical results
Theoretical framework

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics
  • Strategy and Management

Cite this

Choi, Jaewon ; Hackbarth, Dirk ; Zechner, Josef. / Corporate debt maturity profiles. In: Journal of Financial Economics. 2018 ; Vol. 130, No. 3. pp. 484-502.
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Corporate debt maturity profiles. / Choi, Jaewon; Hackbarth, Dirk; Zechner, Josef.

In: Journal of Financial Economics, Vol. 130, No. 3, 12.2018, p. 484-502.

Research output: Contribution to journalArticle

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