Date of Award
May 2023
Degree Type
Dissertation
Degree Name
Doctor of Philosophy
Department
Management Science
First Advisor
Valeriy Sibilkov
Committee Members
John Huck, Joesph Halford, Richard Marcus
Abstract
This study examines the effect of the maturity structure of debt on corporate investment utilizing industry deregulation and alternatively high natural gas price as the exogenous shock to investment opportunities. When the shock occurs, the relation between shorter debt maturity and investment becomes more positive, and exclusively so in firms more likely to be susceptible to investment distortions caused by debt overhang. This study finds no evidence that shorter debt maturity exacerbates debt overhang. The evidence is consistent with Myers (1977) that shorter debt maturity alleviates investment distortions caused by debt overhang.
Recommended Citation
Chen, Yangcheng, "Debt Overhang and Maturity Structure" (2023). Theses and Dissertations. 3129.
https://dc.uwm.edu/etd/3129