Strategic deviation and debt maturity structure

Sagira Sultana Provaty; Shabnaz  Amin; Mostafa Monzur Hasan

doi:10.1016/j.frl.2022.103317

Strategic deviation and debt maturity structure

Sagira Sultana Provaty, Shabnaz Amin, Mostafa Monzur Hasan^*

^*Corresponding author for this work

Department of Accounting and Corporate Governance

Research output: Contribution to journal › Article › peer-review

9 Citations (Scopus)

Abstract

We examine the relationship between strategic deviation and debt maturity structure. Using a large sample of US publicly listed firms from 1981 to 2020, we find that strategic deviation is positively associated with short-term debt. We also find that this relationship is driven by both direct and indirect channels (information asymmetry and corporate governance channels). Our finding remains robust to a series of sensitivity analyses and endogeneity tests. Taken together, we show that strategic deviation has crucial effects on corporate financing decisions.

Original language	English
Article number	103317
Pages (from-to)	1-9
Number of pages	9
Journal	Finance Research Letters
Volume	50
Early online date	8 Sept 2022
DOIs	https://doi.org/10.1016/j.frl.2022.103317
Publication status	Published - Dec 2022

Keywords

Strategic deviation
corporate governance
debt maturity
information asymmetry

Access to Document

10.1016/j.frl.2022.103317

Cite this

@article{b901aa99c0484e58a202cb1ba9ba360f,

title = "Strategic deviation and debt maturity structure",

abstract = "We examine the relationship between strategic deviation and debt maturity structure. Using a large sample of US publicly listed firms from 1981 to 2020, we find that strategic deviation is positively associated with short-term debt. We also find that this relationship is driven by both direct and indirect channels (information asymmetry and corporate governance channels). Our finding remains robust to a series of sensitivity analyses and endogeneity tests. Taken together, we show that strategic deviation has crucial effects on corporate financing decisions.",

keywords = "Strategic deviation, corporate governance, debt maturity, information asymmetry",

author = "Provaty, {Sagira Sultana} and Shabnaz Amin and Hasan, {Mostafa Monzur}",

year = "2022",

month = dec,

doi = "10.1016/j.frl.2022.103317",

language = "English",

volume = "50",

pages = "1--9",

journal = "Finance Research Letters",

issn = "1544-6123",

publisher = "Elsevier",

}

TY - JOUR

T1 - Strategic deviation and debt maturity structure

AU - Provaty, Sagira Sultana

AU - Amin, Shabnaz

AU - Hasan, Mostafa Monzur

PY - 2022/12

Y1 - 2022/12

N2 - We examine the relationship between strategic deviation and debt maturity structure. Using a large sample of US publicly listed firms from 1981 to 2020, we find that strategic deviation is positively associated with short-term debt. We also find that this relationship is driven by both direct and indirect channels (information asymmetry and corporate governance channels). Our finding remains robust to a series of sensitivity analyses and endogeneity tests. Taken together, we show that strategic deviation has crucial effects on corporate financing decisions.

AB - We examine the relationship between strategic deviation and debt maturity structure. Using a large sample of US publicly listed firms from 1981 to 2020, we find that strategic deviation is positively associated with short-term debt. We also find that this relationship is driven by both direct and indirect channels (information asymmetry and corporate governance channels). Our finding remains robust to a series of sensitivity analyses and endogeneity tests. Taken together, we show that strategic deviation has crucial effects on corporate financing decisions.

KW - Strategic deviation

KW - corporate governance

KW - debt maturity

KW - information asymmetry

UR - http://www.scopus.com/inward/record.url?scp=85138792204&partnerID=8YFLogxK

U2 - 10.1016/j.frl.2022.103317

DO - 10.1016/j.frl.2022.103317

M3 - Article

SN - 1544-6123

VL - 50

SP - 1

EP - 9

JO - Finance Research Letters

JF - Finance Research Letters

M1 - 103317

ER -

Strategic deviation and debt maturity structure

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Cite this