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Firm Attributes and Government External Debt as Determinants of Corporate Short Debt Maturity in a Post-CPEC Scenario

Author

Listed:
  • Hussain Rana Yassir

    (UE Business School, Division of Management and Administrative Sciences, University of Education Lahore, Pakistan.)

  • Xuezhou Wen

    (School of Business, Jiangnan University, Wuxi, China.)

  • Hussain Haroon

    (Malik Firoz Khan Noon Business School, University of Sargodha, Pakistan.)

  • Ahmad Ilyas

    (UE Business School, Division of Management and Administrative Sciences, University of Education Lahore, Pakistan.)

  • Irshad Hira

    (Department of Business and Management Sciences, Superior University, Sargodha, Pakistan.)

  • Malik Muhammad Yasir Hayat

    (Department of Mathematics, Division of Science and Technology, University of Education Lahore, Lahore, Pakistan.)

Abstract

The current study investigates the influence of firm attributes and government external debt upon the short debt maturity of non-financial firms listed at the Pakistan Stock Exchange (PSX) in a post-CPEC (China Pakistan Economic Corridor) scenario. By using firm-level panel data, estimations are made through the random effect model with robust standard errors at the level and with lagged independent variables. We dealt endogeneity concerns by employing the system-GMM approach to the complete data sample of 331 firms over a period ranging from 2013 to 2017 and also the post CPEC period ranging from 2015 to 2017. The risk and asset tangibility are strong negative predictors of short debt maturity in Pakistani listed firms. The external debt had a positive and significant role in defining short debt maturity. These results were consistent for both the entire data period and the post CPEC period.

Suggested Citation

  • Hussain Rana Yassir & Xuezhou Wen & Hussain Haroon & Ahmad Ilyas & Irshad Hira & Malik Muhammad Yasir Hayat, 2024. "Firm Attributes and Government External Debt as Determinants of Corporate Short Debt Maturity in a Post-CPEC Scenario," Zagreb International Review of Economics and Business, Sciendo, vol. 27(1), pages 137-154.
    • Handle: RePEc:vrs:zirebs:v:27:y:2024:i:1:p:137-154:n:1007
    DOI: 10.2478/zireb-2024-0007
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    More about this item

    Keywords

    External Government Debt; Short Debt Maturity; Firm Attributes; CPEC;
    All these keywords.

    JEL classification:

    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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