Title: Market timing and the corporate debt maturity choice: the case of Tunisian and French firms
Authors: Khemaies Bougatef; Jameleddine Chichti
Business School of Tunis (ESCT), Manouba University, Campus Universitaire de la Manouba, Manouba, Tunisia.
Business School of Tunis (ESCT), Manouba University, Campus Universitaire de la Manouba, Manouba, Tunisia
Abstract: This paper aims to investigate the determinants of corporate debt maturity structure using a panel of Tunisian and French listed firms. Specifically, we focus on the relevance of market timing considerations on the choice between short- and long-term debts. We find that market timing has no significant impact on the debt maturity choice. We document also that debt maturity is positively related to asset maturity and leverage. The portion of long-term debt decreases with growth opportunities, profitability and size.
Keywords: debt maturity; debt market timing; term spread; panel data; Tunisia; France; corporate debt; long-term debt; growth opportunities; profitability; firm size.
Int. J. of Accounting and Finance, 2011 Vol.3, No.2, pp.131 - 146
Submission date: 14 Oct 2010
Date of acceptance: 06 Jun 2011
Available online: 23 Nov 2011