Optimal debt maturity and firm investment

被引：6
|
作者：
Jungherr, Joachim [1 ]
Schott, Immo [2 ,3 ]
机构：
[1] Univ Bonn, Bonn, Germany
[2] Univ Montreal, Montreal, PQ, Canada
[3] CIREQ, Montreal, PQ, Canada
来源：
REVIEW OF ECONOMIC DYNAMICS | 2021年 / 42卷
基金：
欧盟地平线“2020”; 欧洲研究理事会;
关键词：
Firm dynamics; Firm financing; Debt maturity; Default; DEFAULT; CONSISTENT;
D O I：
10.1016/j.red.2020.10.005
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We introduce long-term debt and a maturity choice into a dynamic model of production, firm financing, and costly default. Long-term debt saves roll-over costs but increases future leverage and default rates because of a commitment problem. The model generates rich distributions of maturity choices, leverage ratios, and credit spreads across firms. It explains why larger and older firms borrow at longer maturities, have higher leverage, and pay lower credit spreads. Firms' maturity choice matters for policy: A financial reform which increases investment and output in a standard model of short-term debt can have the opposite effect in a model with short-term debt and long-term debt. (C) 2020 Elsevier Inc. All rights reserved.
引用
收藏
页码：110 / 132
页数：23
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