Refinancing Risk and Debt Maturity Choice during a Financial Crisis

Arbeitspapier

This paper explores whether refinancing risk is an important determinant of maturity decisions by investigating how firms with refinancing risk choose the maturity of new loans they obtain during the 2007-2009 financial crisis. The firms' refinancing risk is measured by the maturing portion of outstanding long-term debt. The result shows that firms with a high refinancing risk choose longer maturities. This effect is stronger for speculative-grade and low-cash-flow firms. There is also evidence that firms with refinancing risk obtain longer maturities from their relationship lenders.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2018:33

Classification and Topics

• Classification: Wirtschaft ; Financial Crises ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Corporate Finance and Governance: Other
• Subject: Refinancing risk ; Debt maturity ; financial crisis

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Chala, Alemu Tulu
• Event: Veröffentlichung
• (who): Lund University, School of Economics and Management, Department of Economics
• (where): Lund
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/260262
• Last update: 10.03.2025, 11:45 AM CET