Full metadata
Title
Debt structure and future financing and investment
Description
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. Lower leverage increases future debt issues and capital expenditures, and firms do not fully rebalance by reducing the use of external financing sources such as equity. Finally, my results support the view that greater reliance on unsecured debt can increase future debt financing. Overall, my paper offers new insights into how aspects of debt structure, in particular maturity, are related ex-post to firms' ability to raise new financing and invest.
Date Created
2017
Contributors
- Flynn, Sean Joseph (Author)
- Tserlukevich, Yuri (Thesis advisor)
- Hertzel, Mike (Committee member)
- Stein, Luke (Committee member)
- Arizona State University (Publisher)
Topical Subject
Resource Type
Extent
vii, 82 pages : 1 illustration
Language
Copyright Statement
In Copyright
Primary Member of
Peer-reviewed
No
Open Access
No
Handle
https://hdl.handle.net/2286/R.I.44024
Statement of Responsibility
by Sean Joseph Flynn
Description Source
Viewed on February 5, 2021
Level of coding
full
Note
Partial requirement for: Ph.D., Arizona State University, 2017
Note type
thesis
Includes bibliographical references (pages 74-78)
Note type
bibliography
Field of study: Business administration
System Created
- 2017-06-01 01:26:43
System Modified
- 2021-08-26 09:47:01
- 2 years 8 months ago
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