The Determinants of Debt Maturity: The Case of Bank Financing in Singapore
Journal
Review of Quantitative Finance and Accounting
Journal Issue
12
Pages
341-350
Date Issued
1999-06
Author(s)
Abstract
This study presents important international evidence by examining the determinants of debt maturity of listed firms in Singapore, a major financial center in Asia. We focus on bank debt because it is the principal source of financing for most Singapore firms. We find that consistent with the contracting-cost hypothesis, firms with greater growth opportunities rely more heavily on short-term bank debt whereas larger firms are more likely to use long-term bank debt. In contrast, we find no strong support for either the tax or signaling hypotheses. © 1999 Kluwer Academic Publishers.
Type
journal article