Earticle

초록

영어

Debt is an effective mechanism to mitigate agency costs in relieving manager-shareholder conflicts. Similarly, a choice over maturity of debt allows the firm to discipline entrenched managers. We show cross-country evidence that national culture along with corporate governance factor influences the lender’s (or the borrower’s) choice over the firm’s debt maturity. Using Hofestede’s frameworks (1980, 1991), uncertainty avoidance index (UAI), masculinity (MAS), and long-term orientation (LTO) indices are negatively related to overall debt maturity in country. This implies that the risk-averse lenders offer (or, borrowing firms use) short-term maturity debt when surrounding economic environment becomes more uncertain and ambiguous. This is consistent with literatures that national cultural tendency play a critical role in determining financing decision in the presence of uncertainty and ambiguity. We argue that national culture is one of the last factors to the puzzle of disparity of debt maturities across countries. The relative effect of national culture and corporate governance on firms’ debt maturity selection depends on whether a country’s financial system is bank-based economy (e.g., Japan and Germany) or market-based economy (e.g., U.S. and U.K.).

목차

Abstract
 1. Introduction
 2. Literature review
  2.1. Debt maturity and corporate governance for , managerial discipline
  2.2. Debt maturity and risk
  2.3 Cross-country variations in debt maturity
  2.4 Debt maturity and national culture
 3. Hypotheses development
 4. Sample and variables
  4.1. Sample formation
  4.2. Variables
 5. Empirical Analysis
  5.1 Univariate Analysis
  5.2. Two-stage regression
  5.3. Bank- vs. market-based system.
  5.4. Robustness results
 6. Summary and Conclusion
 References
 Table

키워드

저자

• Kiyoung Chang [ University of South Florida-Sarasota, U.S.A. ]
• Jung-Bum Wee [ Kyung Hee University, Seoul, Korea ]
• Ha-Chin Yi [ Texas State University, U.S.A. and Kyung Hee University, Seoul, Korea ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330