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Cited by 152Corporate Finance and GovernanceFinancial Analysis and Corporate GovernanceWorking Capital and Financial Performance

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Debt Maturity Structure and Firm Investment

Aivazian, Varouj A., Ge, Ying, Qiu, Jiaping·2005·Financial Management
DOI 10.1111/j.1755-053x.2005.tb00120.x
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Abstract

This study shows that the maturity structure of a firm's debt has a significant impact on its investment decisions. We show, after controlling for the effect of the overall level of leverage, that a higher percentage of long-term debt in total debt significantly reduces investment for firms with high growth opportunities. In contrast, the correlation between debt maturity and investment is not significant for firms with low growth opportunities. The results are strong at the firm level and at the business segment level. These results hold even after controlling for the endogeneity problem inherent in the relationship between total leverage, the maturity composition of leverage, and investment.

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Research works printed but not linked: 25

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Metadata

Authors
Aivazian, V. A., Ge, Y., & Qiu, J.
Affiliations
  • University of Toronto (CA)
  • University of International Business and Economics (CN)
  • Wilfrid Laurier University (CA)
ORCID
Venue
Financial Management
Publisher
Wiley
Published
2005-12
Volume
34
Issue
4
Pages
107-119
ISSN
  • 0046-3892 (ISSN-L)
  • 1755-053X
DOI
10.1111/j.1755-053x.2005.tb00120.x
OpenAlex
W1995696035
Cited by
152
References
0
Citations by year
2026: 4 · 2025: 10 · 2024: 13 · 2023: 12 · 2022: 16 · 2021: 17 · 2020: 11 · 2019: 6 · 2018: 8 · 2017: 8 · 2016: 6 · 2015: 7 · 2014: 6 · 2013: 6 · 2012: 2
FWCI
2.82
Type
journal article
Language
en
Open access
closed
Licence
doi.wiley.com/10.1002/tdm_license_1.1 (tdm, 3561 d)
Locations
Financial Management (publishedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Finance › Corporate Finance and Governance
  • Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
  • Social Sciences › Business, Management and Accounting › Accounting › Working Capital and Financial Performance
Keywords
debt maturity, long-term debt, corporate investment, growth opportunities, leverage, capital structure, investment decision-making, business segments

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