On the relevance of ownership structure in determining the maturity of debt

Arbeitspapier

I show that ownership by blockholding and board composition is an important determinant of corporate debt maturity structure. Using GMM methodology to control for the potential endogeneity of all regressors, I find a statistically and economically significant negative relation between shortterm debt and both blockholding and board structure, irrespective of the identity of shareholders. Robustness tests provide support for the hypothesis that less diversified shareholders tend to trade off underinvestment against the liquidity risk entailed in shorter maturities. Finally, I report strong evidence that the link with insider ownership is non-linear.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Manchester Business School Working Paper ; No. 547

Classification and Topics

• Classification: Wirtschaft ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
• Subject: debt maturity ; ownership structure ; corporate governance ; endogeneity ; GMM ; Kapitalstruktur ; Kapitalkosten ; Eigentümerstruktur ; Corporate Governance ; Momentenmethode

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Marchica, Maria
• Event: Veröffentlichung
• (who): The University of Manchester, Manchester Business School
• (where): Manchester
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/50703
• Last update: 10.03.2025, 11:41 AM CET