The Effects of Incentive Alignment on Debt Maturity Structure

Park Myung-Ho; Park， Dae-Keun; Yun， Jeongsun

This paper investigates whether and how corporate governance affects the maturity structure of corporate debts in Korea. We find that managerial ownership tends to reduce the maturity of debts for a low-liquidity risk firm. On the other hand, firms with liquidity risk prefer a long-term debt regardless of managerial ownership. This suggests that corporate governance tends to reduce the maturity of debt only for the firms that do not experience liquidity risk. We also find that the interaction effect between managerial ownership and growth opportunity is negative. This implies that the negative effect of managerial ownership is more prominent for firms with growth opportunity.

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* 2021년 이후 발행 논문의 참고문헌은 현재 구축 중입니다.

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