In order to have the optimal capital structure, the company with higher volatility of return adjusts the capital structure more frequently and has shorter debt maturity. Investors also have shorter investment cycle on...In order to have the optimal capital structure, the company with higher volatility of return adjusts the capital structure more frequently and has shorter debt maturity. Investors also have shorter investment cycle on these companies. Investment cycle is also affected by information asymmetry. The less asymmetric the information is, the more information investors get and the longer the investment cycle is. The adjustment frequency is also restricted by financial strength. This paper measures the debt maturity structure of the firm as the weighted average of debt maturity, and it is more precise than the ratio of long term debt to total debt. In empirical tests on debt maturity, the results show that financial strength, volatility of return and asymmetric information all have negative impacts on debt maturity.展开更多
Transitioning from a“planned”economy to a“market”economy may be a long and arduous task for China,but opening its financial markets to foreign competition will help build stability and strength for the Chinese eco...Transitioning from a“planned”economy to a“market”economy may be a long and arduous task for China,but opening its financial markets to foreign competition will help build stability and strength for the Chinese economy, says U.S.Ambassador Alan Holmer.Holmer,who was recently named as Special Envoy for China and for the Strategic Economic Dialogue,answered written questions by Beijing Review on his views of the economic relationship between China and the United States and the reforms he sees as vital to a good bilateral relationship.展开更多
文摘In order to have the optimal capital structure, the company with higher volatility of return adjusts the capital structure more frequently and has shorter debt maturity. Investors also have shorter investment cycle on these companies. Investment cycle is also affected by information asymmetry. The less asymmetric the information is, the more information investors get and the longer the investment cycle is. The adjustment frequency is also restricted by financial strength. This paper measures the debt maturity structure of the firm as the weighted average of debt maturity, and it is more precise than the ratio of long term debt to total debt. In empirical tests on debt maturity, the results show that financial strength, volatility of return and asymmetric information all have negative impacts on debt maturity.
文摘Transitioning from a“planned”economy to a“market”economy may be a long and arduous task for China,but opening its financial markets to foreign competition will help build stability and strength for the Chinese economy, says U.S.Ambassador Alan Holmer.Holmer,who was recently named as Special Envoy for China and for the Strategic Economic Dialogue,answered written questions by Beijing Review on his views of the economic relationship between China and the United States and the reforms he sees as vital to a good bilateral relationship.
