The purpose of this study is the empirical analysis of the determinants of debt maturity. This is done using 505 German and British companies listed nonfinancial a time horizon from 2002 to 2012. Therefore, using panel data techniques (models of fixed and random effects), we analyzed the influence of the variables of the business characteristics of the light theory of agency cost, signaling, liquidity risk and tax effect. Furthermore, we evaluated the variables of the characteristics of countries, including the financial system, the legal system, macroeconomic variables and the culture. Together, the empirical results for both countries in the aforesaid period show a strong influence of the theory of agency cost and signaling, volatility of interest rates and the size of capital markets on the debt maturity. The results also point to a weak evidence of the influence of the GDP growth rate, type of legal system, size of the banking sector and the level of equity market activity on debt maturity. However, we found evidence of the impact contrary to what was expected for the credit rating, effective tax rate, inflation, corruption index and aversion to uncertainty on debt maturity. Separately, we highlighted the lack of empirical support of the theory of agency cost (except for the variable maturity of assets) and signaling in German companies. We also highlighted the positive and significant effect of the size of the capital market and the lack of empirical support for the volatility of the inflation rate in British companies.
Date of Award | 9 Sept 2015 |
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Original language | Portuguese |
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Awarding Institution | - Universidade Católica Portuguesa
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Supervisor | Luis Pacheco (Supervisor) |
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- Debt maturity
- Random effects model
- Fixed effects model
Maturidade da dívida: evidência empírica da Alemanha e Reino Unido
Rafaela, N. A. (Student). 9 Sept 2015
Student thesis: Master's Thesis