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Refinancing Risk and Debt Maturity Choice during a Financial Crisis

Chala, Alemu Tulu LU (2018) In Working Papers
Abstract
This paper explores whether refinancing risk is an important determinant of maturity decisions by investigating how firms with refinancing risk choose the maturity of new loans they obtain during the 2007-2009 financial crisis. The firms' refinancing risk is measured by the maturing portion of outstanding long-term debt. The result shows that firms with a high refinancing risk choose longer maturities. This effect is stronger for speculative-grade and low-cash-flow firms. There is also evidence that firms with refinancing risk obtain longer maturities from their relationship lenders.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
Refinancing risk, Debt maturity, financial crisis, G01, G32, G39
in
Working Papers
issue
2018:33
pages
39 pages
language
English
LU publication?
yes
id
58c29685-89a1-4bb9-ad12-18dd5a68ab33
alternative location
https://swopec.hhs.se/lunewp/abs/lunewp2018_033.htm
date added to LUP
2018-11-19 16:39:02
date last changed
2018-11-21 21:43:26
@misc{58c29685-89a1-4bb9-ad12-18dd5a68ab33,
  abstract     = {This paper explores whether refinancing risk is an important determinant of maturity decisions by investigating how firms with refinancing risk choose the maturity of new loans they obtain during the 2007-2009 financial crisis. The firms' refinancing risk is measured by the maturing portion of outstanding long-term debt. The result shows that firms with a high refinancing risk choose longer maturities. This effect is stronger for speculative-grade and low-cash-flow firms. There is also evidence that firms with refinancing risk obtain longer maturities from their relationship lenders. },
  author       = {Chala, Alemu Tulu},
  keyword      = {Refinancing risk,Debt maturity,financial crisis,G01,G32,G39},
  language     = {eng},
  note         = {Working Paper},
  number       = {2018:33},
  pages        = {39},
  series       = {Working Papers},
  title        = {Refinancing Risk and Debt Maturity Choice during a Financial Crisis},
  year         = {2018},
}