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Title:On the relevance of ownership structure in determining the maturity of debt PDF Logo
Authors:Marchica, Maria
Issue Date:2008
Series/Report no.:Manchester Business School working paper 547
Abstract: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.
Subjects:debt maturity
ownership structure
corporate governance
endogeneity
GMM
JEL:G32
G34
Document Type:Working Paper
Appears in Collections:Manchester Business School Working Paper Series, The University of Manchester

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