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  1. Review of Quantitative Finance and Accounting
  2. Review of Quantitative Finance and Accounting : Volume 20
  3. Review of Quantitative Finance and Accounting : Volume 20, Issue 1, January 2003
  4. Trade-off Model of Debt Maturity Structure
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Review of Quantitative Finance and Accounting : Volume 48
Review of Quantitative Finance and Accounting : Volume 47
Review of Quantitative Finance and Accounting : Volume 46
Review of Quantitative Finance and Accounting : Volume 45
Review of Quantitative Finance and Accounting : Volume 44
Review of Quantitative Finance and Accounting : Volume 43
Review of Quantitative Finance and Accounting : Volume 42
Review of Quantitative Finance and Accounting : Volume 41
Review of Quantitative Finance and Accounting : Volume 40
Review of Quantitative Finance and Accounting : Volume 39
Review of Quantitative Finance and Accounting : Volume 38
Review of Quantitative Finance and Accounting : Volume 37
Review of Quantitative Finance and Accounting : Volume 36
Review of Quantitative Finance and Accounting : Volume 35
Review of Quantitative Finance and Accounting : Volume 34
Review of Quantitative Finance and Accounting : Volume 33
Review of Quantitative Finance and Accounting : Volume 32
Review of Quantitative Finance and Accounting : Volume 31
Review of Quantitative Finance and Accounting : Volume 30
Review of Quantitative Finance and Accounting : Volume 29
Review of Quantitative Finance and Accounting : Volume 28
Review of Quantitative Finance and Accounting : Volume 27
Review of Quantitative Finance and Accounting : Volume 26
Review of Quantitative Finance and Accounting : Volume 25
Review of Quantitative Finance and Accounting : Volume 24
Review of Quantitative Finance and Accounting : Volume 23
Review of Quantitative Finance and Accounting : Volume 22
Review of Quantitative Finance and Accounting : Volume 21
Review of Quantitative Finance and Accounting : Volume 20
Review of Quantitative Finance and Accounting : Volume 20, Issue 4, June 2003
Review of Quantitative Finance and Accounting : Volume 20, Issue 3, May 2003
Review of Quantitative Finance and Accounting : Volume 20, Issue 2, March 2003
Review of Quantitative Finance and Accounting : Volume 20, Issue 1, January 2003
Trade-off Model of Debt Maturity Structure
Using Spinoffs to Reduce Capital Mis-Allocations
Are All Rivals Affected Equally by Bond Rating Downgrades?
Managerial Incentives for Income Smoothing Through Bank Loan Loss Provisions
A Study on Designing a Financial Supervisory Institution in Taiwan
Review of Quantitative Finance and Accounting : Volume 19
Review of Quantitative Finance and Accounting : Volume 18
Review of Quantitative Finance and Accounting : Volume 17
Review of Quantitative Finance and Accounting : Volume 16
Review of Quantitative Finance and Accounting : Volume 15
Review of Quantitative Finance and Accounting : Volume 14
Review of Quantitative Finance and Accounting : Volume 13
Review of Quantitative Finance and Accounting : Volume 12
Review of Quantitative Finance and Accounting : Volume 11
Review of Quantitative Finance and Accounting : Volume 10
Review of Quantitative Finance and Accounting : Volume 9
Review of Quantitative Finance and Accounting : Volume 8

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Trade-off Model of Debt Maturity Structure

Content Provider Springer Nature Link
Author Jun, Sang Gyung Jen, Frank C.
Copyright Year 2003
Abstract In this paper, we suggest the trade-off model to explain the choice of debt maturity. This model is based on balancing between risk and reward of using shorter-term loans. Shorter-term loans have cost advantage over, but incur higher refinancing and interest rate risk than longer-term loans. Using the Compustat data, we show that the principal components of financial attributes are financial flexibility and financial strength. Therefore, only firms with greater financial flexibility and financial strength can use proportionately more short-term loans. We also document that financially strong firms take advantage of lower interest rates of short-term debt. They use proportionately more short-term loans when the term premium is high. The results of our study also provide evidence supporting the agency cost hypothesis, which is strongly supported by current literature.
Starting Page 5
Ending Page 34
Page Count 30
File Format PDF
ISSN 0924865X
Journal Review of Quantitative Finance and Accounting
Volume Number 20
Issue Number 1
e-ISSN 15737179
Language English
Publisher Kluwer Academic Publishers
Publisher Date 2003-01-01
Publisher Place Boston
Access Restriction One Nation One Subscription (ONOS)
Subject Keyword Econometrics Accounting/Auditing Finance /Banking Operation Research/Decision Theory
Content Type Text
Resource Type Article
Subject Finance Accounting
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