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New insights on the importance of agency costs for corporate debt maturity decisions

Year: 2005

Type: article

Abstract: This study provides new insights on the relationship between corporate debt maturity and agency costs by investigating empirically the impact of managerial ownership and the divergence between control and cash-flow rights on debt maturity. A significant negative effect of managerial ownership on debt maturity is observed. Moreover, the results reveal that the wedge between control and cash-flow rights also exerts a negative influence. The analysis further suggests that the negative effect of managerial ownership decreases in widely-held firms and increases with the discrepancy between control and cash-flow rights.

Source: Applied Financial Economics Letters

DOI: 10.1080/17446540500117610

Authors: Yilmaz Guney, Aydin Ozkan *

Institutions: University of Surrey, University of York

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2019848216

FWCI: 5.633

Cites: 17

Cited by: 26

Related to: 10