Determinants of corporate debt maturity in South America: Do institutional quality and financial development matter?

Kirch, Guilherme; Terra, Paulo Renato Soares

doi:10.1016/j.jcorpfin.2012.05.004

Cited by 97 publications

(100 citation statements)

References 54 publications

(56 reference statements)

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“…Adicionou-se, ainda, uma variável binária (ANO tfsp ) para cada ano da análise, exceto o primeiro. (Antoniou, Guney, & Paudyal, 2006;Kirch & Terra, 2012;Ozkan, 2000;Stohs & Mauer, 1996;Terra, 2011). Liquidez é mensurada por Ativos Correntes/Ativo Total (medida análoga a Antoniou et al, 2006;Guney & Ozkan, 2005;Terra, 2011 …”

Section: A Inclusão Das Variáveis Independentesunclassified

Determinantes Nacionais e Setoriais da Estrutura de Capital na América Latina

Martins

Terra

2014

Rev. adm. contemp.

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Este estudo identificou o papel do ambiente nacional (Macroeconomia, Desenvolvimento Financeiro e Qualidade Institucional) e das características dos setores de atividade (Munificência, Dinamismo, Concentração, Ciclo de Vida, Dispersão da Eficiência Tecnológica, Dispersão da Qualidade dos Produtos, Poder de Barganha dos Clientes e Poder de Barganha dos Fornecedores) sobre o endividamento de 612 companhias abertas de sete países da América Latina (Argentina, Brasil, Chile, Colômbia, México, Peru e Venezuela). Para fins de comparação, estende-se a análise, também, a 847 companhias dos Estados Unidos. O período estudado é o de 1996-2009 e, para a análise, utiliza-se o Modelo Linear Hierárquico, que permite controlar os efeitos de acordo com o nível das variáveis (país, setor, tempo e firma). Os resultados sugerem que o Desenvolvimento Financeiro facilita o acesso a recursos de terceiros e que a Qualidade Institucional é negativamente relacionada com a Alavancagem das empresas. Encontraram-se, também, evidências de que a Qualidade Institucional pode promover o desenvolvimento assimétrico entre o mercado acionário e o de crédito.

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Section: A Inclusão Das Variáveis Independentesunclassified

Determinantes Nacionais e Setoriais da Estrutura de Capital na América Latina

Martins

Terra

2014

Rev. adm. contemp.

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“…In particular, companies will adjust bank debt maturity to their needs but conditioned by asymmetric information considerations, agency problems and regulation and institutional limitations (Demirgüç-Kunt, Maksimovic 1999). The results of Antoniou et al (2006Antoniou et al ( , 2008, Kirch and Soares (2012) or Öztekin (2015) support the hypothesis that the quality of national institutions is an important determinant of corporate financing in general and of debt maturity in particular. Furthermore, the aim of regulation is to design institutional regulatory features that would contribute to lessen agency costs.…”

Section: Literature Review and Hypothesesmentioning

confidence: 94%

How Regulation Affects the Relevance of Bank-Debt Maturity as a Control Mechanism in Developed Countries

González

Saona

Martín

2017

Journal of Business Economics and Management

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Abstract. Improvements in transparency at the country level have modified the relevance of bank debt maturity as a control mechanism. The novelty of this research is that we provide empirical evidence that the maturity of bank borrowing is contingent on the characteristics of the regulatory and the institutional setting about corporate governance. The main implication of our paper is that corporate governance rules have greater influence in civil-law countries than in common-law countries in promoting efficiency in the use of bank debt maturity. The value of this paper is that our results confirm that the implementation of similar regulations on transparency across countries with different legal systems favors the alignment of the role played by short-term bank debt in addressing asymmetric information, agency costs, and inefficient liquidation.

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“…Tangible assets (Tangibility) are physical form of assets that can be used as collateral against external borrowing. Tangibility is found to be positively related to debt maturity structure (Fan, Titman, & Twite, 2012;Kirch & Terra, 2012;Rauh & Sufi, 2010). Firms with higher tangibility have lower bankruptcy costs because more assets can be collateralised for borrowing in comparison to firms with lower tangible assets.…”

Section: Variables Selectionmentioning

confidence: 95%

“…Therefore, the former firms are expected to borrow more long-term debt. Moreover, for the emerging markets, tangible assets play an important role because the levels of collateralised assets determine if a firm has the capacity to borrow longer-term debt (Kirch & Terra, 2012).…”

Section: Variables Selectionmentioning

confidence: 99%

“…The significant and positive coefficient of the tangibility variable is consistent with the expected sign. Firms with higher tangible assets are found to borrow more long-term debt because more assets can be used as collateral against the borrowing (Fan et al, 2012;Kirch & Terra, 2012), which also implies lower bankruptcy risk. However, the profitability variable loads positive.…”

Section: Long-term Debt and Agency Costs Of Debt By Corporate Valuementioning

confidence: 99%

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