Barclay and Smith are from the William E. Simon Graduate School of Business Administration, University of Rochester, Rochester, New York. We thank the Bradley Policy Research Center at the University of Rochester for financial support.
The Maturity Structure of Corporate Debt
Article first published online: 30 APR 2012
1995 The American Finance Association
The Journal of Finance
Volume 50, Issue 2, pages 609–631, June 1995
How to Cite
BARCLAY, M. J. and SMITH, C. W. (1995), The Maturity Structure of Corporate Debt. The Journal of Finance, 50: 609–631. doi: 10.1111/j.1540-6261.1995.tb04797.x
- Issue published online: 30 APR 2012
- Article first published online: 30 APR 2012
We provide an empirical examination of the determinants of corporate debt maturity. Our evidence offers strong support for the contracting-cost hypothesis. Firms that have few growth options, are large, or are regulated have more long-term debt in their capital structure. We find little evidence that firms use the maturity structure of their debt to signal information to the market. The evidence is consistent, however, with the hypothesis that firms with larger information asymmetries issue more short-term debt. We find no evidence that taxes affect debt maturity.