Corporate debt maturity policy and investor tax-timing options: theory and evidence. (includes appendices)

Financial Management | March 22, 1995| | Copyright

The effect of debt maturity structure on the value of the firm is a central issue in the corporate finance literature. The implications of debt maturity for corporate taxes (Boyce and Kalotay (1979), Brick and Ravid (1985, 1991), and Kane, Marcus, and McDonald (1985)), agency costs (Bamea, Haugen, and Senbet (1980) and Myers (1977)), informational asymmetry (Diamond (1991), Flannery (1986), and Kale and Noe (1990)), and corporate hedging (Morris (1976a, 1976b)) have been among the factors considered. The purpose of this paper is to examine the effect of corporate debt maturity ...

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