Debt maturity structure of low and high Tobin's Q firms
This study examines the effects of growth in influencing debt maturity structure of Malaysian companies. The result shows that growth firms with high Tobin’s Q are indifferent between short-term and long-term debt financing. However, the relationship between growth and debt maturity is negatively re...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English English |
| Published: |
2014
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| Subjects: | |
| Online Access: | https://etd.uum.edu.my/4714/1/s813821.pdf https://etd.uum.edu.my/4714/2/s813821_abstract.pdf https://etd.uum.edu.my/4714/ |
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| Summary: | This study examines the effects of growth in influencing debt maturity structure of Malaysian companies. The result shows that growth firms with high Tobin’s Q are indifferent between short-term and long-term debt financing. However, the relationship between growth and debt maturity is negatively related for firms with low Tobin’s Q. Therefore, this implies that growth firms with high Tobin’s Q do not make use of debt maturity structure to mitigate the agency cost of debt caused by underinvestment problem, while growth firms with low Tobin’s Q maintain higher levels of short-term debt, but lower levels of long-term debt to mitigate agency cost of equity caused by overinvestment problem |
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