I study the relation between firm debt structure and future external financing and investment. I find that greater reliance on long-term debt is associated with increased access to external financing and ability to undertake profitable investments. This contrasts with previous empirical results and theoretical predictions from the agency cost literature, but it is consistent with predictions regarding rollover risk. Furthermore, I find that firms with lower total debt (high debt capacity) have greater access to new financing and investment.
Download count: 0
- Partial requirement for: Ph.D., Arizona State University, 2017Note typethesis
- Includes bibliographical references (pages 74-78)Note typebibliography
- Field of study: Business administration