Abstract
Purpose – The purpose of this paper is to test the main theories of corporate debt maturity in a multi‐country framework, in an attempt to understand country‐specific constraints.Design/methodology/approach – Dynamic panel data analysis estimated by the generalized method of moments, techniques that account properly for cross‐section and time series variation allowing for dynamic effects.Findings – There is a substantial dynamic component in the determination of a firm's maturity structure; firms face moderate adjustment costs towards its optimal maturity, and the determinants of maturity structure and their effects are similar between Latin American countries and the USA; and there is a partial empirical support for each of the theoretical hypotheses tested.Research limitations/implications – Firm ownership, accounting standards, financial market depth, and the degree of supervision on financial reporting may vary across countries, which may affect the quality and consistency of some variables.Practical ...
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