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Jun, Sang-gyung; Jen, Frank C.

doi:10.1023/a:1022190205033

Cited by 81 publications

(29 citation statements)

References 35 publications

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“…We expect a positive relation between debt maturity and the firm's size. This is also supported in the case of US firms (Barclay and Smith 1995;Stohs and Mauer 1996;Jun and Jen 2003;Barclay et al 2003), British firms (Ozkan 2000) or Spanish firms (Cuñat 1999). …”

Section: Theoretical Foundations and Hypothesesmentioning

confidence: 74%

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Ownership structure and debt maturity: new evidence from Spain

García‐Teruel

Martínez‐Solano

2009

Rev Quant Finan Acc

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Section: Theoretical Foundations and Hypothesesmentioning

confidence: 74%

“…Because of this, and following previous papers about debt maturity (for exampleScherr and Hulburt 2001;Jun and Jen 2003; or García-Teruel and Martínez-Solano 2007) we have used as a proxy for credit quality a bankruptcy prediction model.…”

mentioning

confidence: 99%

Ownership structure and debt maturity: new evidence from Spain

García‐Teruel

Martínez‐Solano

2009

Rev Quant Finan Acc

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“…An increase in short-term debts in WCF gradually increases profit because short-term debts have low interest rates and are free from inflation uncertainties. These two factors become more influential in long-term debts [29]. Short-term borrowing is more flexible to the financial requirements of a firm [29].…”

Section: Wcf and Firm Profitabilitymentioning

confidence: 99%

“…These two factors become more influential in long-term debts [29]. Short-term borrowing is more flexible to the financial requirements of a firm [29]. Similarly, short-term debts improve firm-lender relationships via repeated renewals, which ultimately reduces interest rates on future debts [30].…”

Section: Wcf and Firm Profitabilitymentioning

confidence: 99%

Moderating Effects of Firm Size and Leverage on the Working Capital Finance–Profitability Relationship: Evidence from China

et al. 2019

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We evaluated the moderating effects of firm size and leverage on the working capital finance (WCF)-profitability relationship among Chinese companies during 2000-2017. Applying the generalized method of moments (GMM) technique on panel data, we observed that firm size and leverage have strong moderating roles in the WCF-profitability relationship. We observed that small or low-leverage firms have an inverted U-shaped WCF-profitability relationship. However, this relationship is U-shaped for large or high-leverage firms. We report break-even points in these relationships that show the portion of short-term debt in working capital financing. The results reveal that the break-even point for all subgroups (small, large, low-leverage, and high-leverage firms) decreases compared to the break-even point of the full sample. This study shows how the break-even point of the WCF-profitability relationship shifts when a company expands or its leverage level changes. Managers can use this information for profit maximization.

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“…In terms of the control variables, the level of debt, the tangible assets, the size of the fi rm, liquidity and the cost of debt have signifi cant positive infl uence on the debt maturity [43], [28]. The infl uence of the growth opportunities [59] and sales rotation is negative.…”

Section: Tab 2: Estimation Of Model 1 -Debt Levelmentioning

confidence: 99%