The determinants of debt maturity structure: evidence from France, Germany and the UK

Antonios Antoniou, Yilmaz Guney, Krishna Paudyal

Research output: Contribution to journalArticle

76 Citations (Scopus)

Abstract

We examine the determinants of the debt maturity structure of French, German and British firms. These countries represent different financial and legal traditions that may have implications on corporate debt maturity structure. Our model incorporates the factors representing three major theories (tax considerations, liquidity and signalling, and contracting costs) of debt maturity. It also controls for capital market conditions. The results confirm the applicability of most theories of debt maturity structure for the UK firms. However, the evidence from France and Germany are mixed. Overall the findings suggest that the debt maturity structure of a firm is determined by firm-specific factors and the country's financial systems and institutional traditions in which it operates.

LanguageEnglish
Pages161-194
Number of pages34
JournalEuropean Financial Management
Volume12
Issue number2
DOIs
Publication statusPublished - 31 Mar 2006

Fingerprint

Debt maturity structure
France
Germany
Contracting
Debt maturity
Factors
Capital markets
Market conditions
Financial system
Cost of debt
Liquidity
Corporate debt
Tax
Firm-specific factors
Legal traditions

Keywords

  • dynamic debt maturity structure
  • panel data
  • system-GMM

Cite this

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The determinants of debt maturity structure : evidence from France, Germany and the UK. / Antoniou, Antonios; Guney, Yilmaz; Paudyal, Krishna.

In: European Financial Management, Vol. 12, No. 2, 31.03.2006, p. 161-194.

Research output: Contribution to journalArticle

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