We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Effects of foreign ownership and International Financial Reporting Standards on debt maturity in Chilean firms.
- Authors
Muñoz-Mendoza, Jorge A.; Sepúlveda-Yelpo, Sandra M.; Veloso-Ramos, Carmen L.; Delgado-Fuentealba, Carlos L.
- Abstract
The objective of this article is to determine the effects of foreign ownership and International Financial Reporting Standards (IFRS) on debt maturity in Chilean companies. The study uses a fractional response model (FRM) on 20,586 companies. The results show foreign ownership has a negative and non-linear effect. Foreign ownership in Chilean firms is a substitute control means in relation to long-term debt. IFRS reduces maturity in large companies and extends them in small and medium enterprises (SMEs). These results suggest it is more important for large firms to control agency conflicts, while it is more important for SMEs to reduce information asymmetry.
- Subjects
INTERNATIONAL Financial Reporting Standards; INFORMATION asymmetry; LONG-term debt; DEBT; MATURITY (Finance)
- Publication
Estudios Gerenciales, 2019, Vol 35, Issue 153, p416
- ISSN
0123-5923
- Publication type
Article
- DOI
10.18046/j.estger.2019.153.3374