Determinants of debt maturity structures in pakistan
Debt maturity should increase with slope of the term structure of interest rates volatility of interest rates: kim, mauer, and stohs (1995) develop a multi-period model to analyze how corporate debt maturity a ects investor tax-timing options to tax-trade corporate securities. Determinants of debt-maturity structure of pakistani firms in a study on determinants of capital structure of pakistani listed firms, shah and hijazi (2004) report greater. Research on the determinants of bank profitability has focused on the returns of bank assets and equity, and net interest rate margins it has traditionally explored the impact on bank performance of bank-specific factors, such as risk, market power, and regulatory costs. The role ofdebt maturity structure, in addition to the level of debt, in mitigating agency problems1 these models study the ex ante optimal mix of short-term and long-term debt that reduces agency conﬂicts between managers and shareholders. Firm’s credit rating and optimal capital structure are directly related sarkar (2011), decisions about determinants of capital structure were needed for definitive stages of firm's life cycle their study showed that there was a positive relation between leverage and debt maturity as by hypothesis kim et al (2006), took sample of.
Determinants of corporate hedging practices: this is supported by singh (2009), who had conducted a study on how debt maturity structure and exposure affect the interest rate derivatives in the lodging industry he found out that firms in lodging industry will expose to more risks from corporate hedging policies in pakistan from year. Determinants of capital structure: empirical evidence from pakistan master thesis submitted to: value can be achieved once financial mangers identify the determinants of capital structure debt has maturity—refers to time period until particular debt remains outstanding such as a 10-year. The study investigates the determinants of corporate debt maturity structure for a sample of 23 banks listed in the karachi stock exchange (kse) this paper covers the six years period from 2005.
Debt maturity structure is an opportunity first and foremost for borrowers to handle debt more efficiently, but also a chance for lenders to gain influence over the money invested into the company. The determinants of corporate debt maturity structure created date: 20160808234945z. The authors empirically investigate the determinants and consequences of the maturity structure of debt, using data from a panel of uk and italian firms they find that in choosing a maturity structure for debt, firms tend to match assets and liabilities, as both conventional wisdom and some recent theoretical models suggest. Capital structure usually refers to a firm's debt-to-equity ratio, which shows how risky a firm is the capital structure of pharmaceutical firms in pakistan as capital structure determination is purely finance (graham & harvey, 2001) even trade off theory has established foundation for capital structure determinants but. After a firm decides to finance itself with debt, it has to decide on the duration of the maturity of debt: short, medium or long term this study attempts to illustrate the effects of growth option, firm size, leverage, liquidity and assets maturity on a firms debt maturity structure.
This paper studies the optimal maturity structure of debt in a standard investment model firms operate long-term assets, and may want to use long-term debt to reduce short-term re nanc- the relatively limited empirical literature on the determinants of debt maturity bothbarclay and. Debt maturity structure and the 1997 asian financial crisis, journal of multinational financial management, elsevier, vol 19(1), pages 26-42, february rataporn deesomsak & krishna paudyal & gioia pescetto, 2007. Managerial stock ownership and the maturity structure 2335 and controlling for leverage (predicted from the first-stage regression), asset maturity, growth opportunities, firm size, term structure, bond rating, and.
Based on the debt maturity structure theory and learning from leary (2009), voutsinas and werner (2011), this study designs a model to investigate the dynamic characteristics and factors of debt maturity structure. 1 public debt and its determinants in market access countries1 results from 15 country case studies march 2005 the world bank 1 this report is the results of a collective effort by a world bank team, led by nina budina and norbert fiess major contributions were made by augusto clavijo, guatam datta, viktoria hnatkovska, karlygash. ¾ when it comes to deciding on maturity structure and debt currency mix, the structure of the firm’s assets is more important, but even for those elements of debt structure, pricing factors receive a lot of weight. Impact of capital structure on firm performance: evidence from pakistani firms tariq javed assistant audit officer, government of pakistan, islamabad determinants of capital structure showed positive impact over firm performance while others there are mixed results about the influence of capital structure on firm performance. The maturity structure of debt : determinants and effects on firms' performance - evidence from the united kingdom and italy (english) abstract the authors empirically investigate the determinants and consequences of the maturity structure of debt, using data from a panel of uk and italian firms.
Determinants of debt maturity structures in pakistan
The fundamental purpose of study was to observe the impact of sales growth in detail by guedes and opler (1996) and saumitra (2002) presented the detailed information regarding the determinants of corporate borrowing such as sales growth and the firm debt financing decision in pakistan. The determinants of corporate debt maturity structure 197 variable: share of long-term debt, and the explanatory variables: excess bond returns, market-to-book ratio, regulatory dummy variable, log of market value of firm, abnormal. Commonality between the determinants of basic capital structure and debt maturity was observed reinforces the view that the two financing decisions are highly intertwined and, perhaps, jointly determined. Debt maturity structure and taxation, and the optimal strategy to work on the ﬁrms is to increase the long-term debt signaling theory stated that the selection of debt maturity structure is dependent on the private.
- Chapter one based on the introduction of the thesis, which contained introduction about debt maturity structure by different researchers, the statement of problem, and hypotheses etc chapter two contained literature review given by different researchers, theories on debt maturity structure, and factors which were directly or indirectly related.
- Consider their priority in the structure of debt, debt maturity, decision of mixed debt to certain parties or to the investor, and other types of debt contracts the manufacturing sector of any economy is involved in conversion of raw materials into finished.
1 introductionsince the seminal works of modigliani and miller, the capital structure of corporations has attracted intense scrutiny recently, researchers have been examining how a firm's debt maturity mix, the choice between short-term and long-term debt, is determined. The determinants of corporate debt maturity structure: evidence from czech firms pavel körner institute of economic studies, faculty of social sciences, charles university. 32 g m wali ullah et al: determinants of capital structure and its impact on the debt maturity of the textile industry of bangladesh primarily based on aspects of and data from developed western economics few researches are carried on the perspective of.