Debt maturity and initial public offerings

被引：5
作者：
Abdulla Y. [1 ]
Dang V.A. [1 ]
Khurshed A. [1 ]
机构：
[1] Manchester Business School, The University of Manchester, Booth Street West, Manchester
来源：
Review of Quantitative Finance and Accounting | 2016年 / 47卷 / 4期
关键词：
Agency costs; Asymmetric information; Capital structure; Debt maturity; IPO; Short-term debt;
D O I：
10.1007/s11156-015-0533-1
中图分类号：
学科分类号：
摘要：
We investigate the effect of initial public offerings (IPOs) on the evolution of debt maturity by tracking a sample of US firms that went public over the period 1998–2011. Our findings reveal a significant and permanent increase in debt maturity post-IPO. The short-term debt ratio drops by nearly a fifth in the first 2 years after the IPO. These findings are economically significant and robust to controlling for the endogeneity in the listing decision. However, the lengthening of the post-IPO debt maturity is only evident in small, high-growth, and highly levered firms. This finding lends greater support to asymmetric information models than theories based on the agency costs of debt. There is some support for the argument based on the agency costs of equity as the IPO effect on debt maturity is only significant for firms with a high dilution ratio. Finally, the IPO effect varies with macroeconomic conditions as the increase in debt maturity post-IPO was most pronounced during the recent financial crisis of 2007–2008. © 2015, Springer Science+Business Media New York.
引用
收藏
页码：1129 / 1165
页数：36
相关论文
共 67 条
[1]  
Acharya V., Xu Z., Financial dependence and innovation: the case of public versus private firms, J Financ Econ (Forthcoming), (2015)
[2]  
Acharya V., Sundaram R., John K., Cross-country variations in capital structures: the role of bankruptcy codes, J Financ Intermed, 20, pp. 25-54, (2011)
[3]  
Aivazian V., Ge Y., Qiu J., The impact of leverage on firm investment: Canadian evidence, J Corp Financ, 11, pp. 277-291, (2005)
[4]  
Aivazian V., Ge Y., Qiu J., Debt maturity structure and firm investment, Financ Manag, 34, pp. 107-119, (2005)
[5]  
Alderson M., Bansal N., Betker B., Secured debt and managerial incentives, Rev Quant Financ Account, 43, pp. 423-440, (2014)
[6]  
Almeida H., Campello M., Laranjeira B., Weisbenner S., Corporate debt maturity and the real effects of the 2007 credit crisis, Crc Financ Rev, 1, pp. 3-58, (2011)
[7]  
Alti A., How persistent is the impact of market timing on capital structure?, J Financ, 61, pp. 1681-1710, (2006)
[8]  
Antoniou A., Guney Y., Paudyal K., The determinants of debt maturity structure: evidence from France, Germany and the UK, Eur Financ Manag, 12, pp. 161-194, (2006)
[9]  
Asker J., Farre-Mensa J., Ljungqvist A., Corporate investment and stock market listing: a puzzle?, Rev Financ Stud, 28, pp. 342-390, (2015)
[10]  
Aslan H., Kumar P., Lemons or cherries? Growth opportunities and market temptations in going public and private, J Financ Quant Anal, 46, pp. 489-526, (2011)
1234567