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New insights on the importance of agency costs for corporate debt maturity decisions

Guney, Yilmaz; Ozkan, Aydin

Authors

Yilmaz Guney

Aydin Ozkan



Abstract

This study provides new insights on the relationship between corporate debt maturity and agency costs by investigating empirically the impact of managerial ownership and the divergence between control and cash-flow rights on debt maturity. A significant negative effect of managerial ownership on debt maturity is observed. Moreover, the results reveal that the wedge between control and cash-flow rights also exerts a negative influence. The analysis further suggests that the negative effect of managerial ownership decreases in widely-held firms and increases with the discrepancy between control and cash-flow rights.

Journal Article Type Article
Publication Date 2005-07
Journal Applied Financial Economics Letters
Print ISSN 1744-6546
Electronic ISSN 1744-6554
Publisher Taylor & Francis
Peer Reviewed Peer Reviewed
Volume 1
Issue 4
Pages 233-238
APA6 Citation Guney, Y., & Ozkan, A. (2005). New insights on the importance of agency costs for corporate debt maturity decisions. Applied financial economics letters, 1(4), 233-238. https://doi.org/10.1080/17446540500117610
DOI https://doi.org/10.1080/17446540500117610
Keywords Debt maturity; Agency costs; Managerial ownership
Publisher URL https://www.tandfonline.com/doi/abs/10.1080/17446540500117610

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©2007 The authors. All rights reserved. No part of this publication may be reproduced without the written permission of the copyright holder





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