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An International Comparison of Capital Structure and Debt Maturity Choices

Fan, Joseph; Titman, Sheridan; Twite, Garry

Description

This study examines how the institutional environment influences capital structure and debt maturity choices of firms in 39 developed and developing countries. We find that a country's legal and tax system, corruption, and the preferences of capital suppliers explain a significant portion of the variation in leverage and debt maturity ratios. Specifically, firms in more corrupt countries and those with weaker laws tend to use more debt, especially short-term debt; explicit bankruptcy codes and...[Show more]

dc.contributor.authorFan, Joseph
dc.contributor.authorTitman, Sheridan
dc.contributor.authorTwite, Garry
dc.date.accessioned2015-12-08T22:16:59Z
dc.identifier.issn0022-1090
dc.identifier.urihttp://hdl.handle.net/1885/30931
dc.description.abstractThis study examines how the institutional environment influences capital structure and debt maturity choices of firms in 39 developed and developing countries. We find that a country's legal and tax system, corruption, and the preferences of capital suppliers explain a significant portion of the variation in leverage and debt maturity ratios. Specifically, firms in more corrupt countries and those with weaker laws tend to use more debt, especially short-term debt; explicit bankruptcy codes and deposit insurance are associated with higher leverage and more long-term debt. More debt is used in countries where there is a greater tax gain from leverage.
dc.publisherCambridge Journals
dc.sourceJournal of Financial and Quantitative Analysis
dc.titleAn International Comparison of Capital Structure and Debt Maturity Choices
dc.typeJournal article
local.description.notesImported from ARIES
local.identifier.citationvolume45
dc.date.issued2012
local.identifier.absfor140210 - International Economics and International Finance
local.identifier.ariespublicationu4602557xPUB78
local.type.statusPublished Version
local.contributor.affiliationFan, Joseph, Chinese University of Hong Kong
local.contributor.affiliationTitman, Sheridan, University of Texas
local.contributor.affiliationTwite, Garry, College of Business and Economics, ANU
local.description.embargo2037-12-31
local.bibliographicCitation.issue1
local.bibliographicCitation.startpage23
local.bibliographicCitation.lastpage56
local.identifier.doi10.1017/S0022109011000597
dc.date.updated2015-12-08T08:06:13Z
local.identifier.scopusID2-s2.0-84859957737
local.identifier.thomsonID000301936200001
CollectionsANU Research Publications

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