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Article

Financial Leverage and Debt Maturity Targeting: International Evidence

College of Business, Florida International University, 11200 S.W. 8th Str., Miami, FL 33199, USA
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Academic Editors: Wing-Keung Wong, Husam Rjoub and Kittisak Jermsittiparsert
J. Risk Financial Manag. 2021, 14(9), 437; https://doi.org/10.3390/jrfm14090437
Received: 2 July 2021 / Revised: 28 August 2021 / Accepted: 3 September 2021 / Published: 9 September 2021
We provide evidence on leverage and debt maturity targeting in a large international setting. There are key differences in the relative importance of institutional factors in explaining actual as opposed to target capital structures. Targets and target deviations are plausibly influenced by the institutional environment. Firms from countries with strong legal institutions target lower leverage and higher long-term debt, whereas better-functioning financial systems result in lower target leverage and long-term debt. Financial crisis has shifted the desired structure of the securities toward shorter maturities and has led to more prevalent target deviations. Better institutions significantly decrease the likelihood of target deviations. View Full-Text
Keywords: target capital structure; debt maturity; international; institutions target capital structure; debt maturity; international; institutions
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MDPI and ACS Style

Gungoraydinoglu, A.; Öztekin, Ö. Financial Leverage and Debt Maturity Targeting: International Evidence. J. Risk Financial Manag. 2021, 14, 437. https://doi.org/10.3390/jrfm14090437

AMA Style

Gungoraydinoglu A, Öztekin Ö. Financial Leverage and Debt Maturity Targeting: International Evidence. Journal of Risk and Financial Management. 2021; 14(9):437. https://doi.org/10.3390/jrfm14090437

Chicago/Turabian Style

Gungoraydinoglu, Ali, and Özde Öztekin. 2021. "Financial Leverage and Debt Maturity Targeting: International Evidence" Journal of Risk and Financial Management 14, no. 9: 437. https://doi.org/10.3390/jrfm14090437

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