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- Title
Non-linear Effects of Ownership Structure, Growth Opportunities and Leverage on Debt Maturity in Chilean Firms.
- Authors
Muñoz Mendoza, Jorge A.; Sepúlveda Yelpo, Sandra M.; Veloso Ramos, Carmen L.
- Abstract
In this article we analyze the non-linear effect of ownership structure, growth, and indebtedness opportunities on the debt maturity of Chilean companies. A sample of 20,586 companies extracted from the Longitudinal Business Survey was used and a Tobit Regression Model was applied. The results showed that ownership concentration reduced debt maturity. Managerial ownership had a positive and non-linear effect on debt terms, where managerial entrenchment promoted long-term debt for low managerial ownership levels. State ownership had a positive impact on debt maturity. Growth opportunities had a negative impact, while leverage had a positive impact, although their effects are not persistent and depend on the level of these attributes. This study is a pioneer in the use of a wide sample of companies and will allow investors to make better investment decisions since they will be able to identify companies according to these attributes and mitigate the wealth expropriation risk.
- Subjects
CHILE; DISCHARGE of debt; DEBT management; FINANCIAL leverage; GOVERNMENT ownership; BUSINESS enterprises; REGRESSION analysis
- Publication
Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas, 2019, Vol 14, Issue 1, p21
- ISSN
1665-5346
- Publication type
Article
- DOI
10.21919/remef.v14i1.357