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The Debt Maturity Choice: A Multinominal Logit Analysis

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  • Mitchell, Karlyn

Abstract

This paper presents an empirical investigation of the determinants of firms' debt maturity choices. Testable hypotheses about the determinants are identified and discussed. A multinomial logit model to test the hypotheses is developed and estimated on· a sample of bonds offered by industrial corporations from 1982 to ,1986.

Suggested Citation

  • Mitchell, Karlyn, 1988. "The Debt Maturity Choice: A Multinominal Logit Analysis," Department of Economics and Business - Archive 259441, North Carolina State University, Department of Economics.
    • Handle: RePEc:ags:ncbuar:259441
    DOI: 10.22004/ag.econ.259441
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    References listed on IDEAS

    as
    1. M.A. Grove, 1974. "On "Duration" and the Optimal Maturity Structure of the Balance Sheet," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 696-709, Autumn.
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    5. Brick, Ivan E. & Mellon, W. G. & Surkis, Julius & Mohl, Murray, 1983. "Optimal capital structure : A multi-period programming model for use in financial planning," Journal of Banking & Finance, Elsevier, vol. 7(1), pages 45-67, March.
    6. Kaplan, Robert S & Urwitz, Gabriel, 1979. "Statistical Models of Bond Ratings: A Methodological Inquiry," The Journal of Business, University of Chicago Press, vol. 52(2), pages 231-261, April.
    7. Kane, Alex & Marcus, Alan J. & McDonald, Robert L., 1985. "Debt Policy and the Rate of Return Premium to Leverage," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 20(4), pages 479-499, December.
    8. Fogler, H Russell & John, Kose & Tipton, James, 1981. "Three Factors, Interest Rate Differentials and Stock Groups," Journal of Finance, American Finance Association, vol. 36(2), pages 323-335, May.
    9. Friedman, Benjamin M, 1979. "Substitution and Expectation Effects on Long-Term Borrowing Behavior and Long-Term Interest Rates," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 11(2), pages 131-150, May.
    10. James Van Horne, 1965. "Liquidity Preference, Interest‐Rate Risk, And The Term Structure Of Interest Rates," Journal of Finance, American Finance Association, vol. 20(3), pages 515-516, September.
    Full references (including those not matched with items on IDEAS)

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