Three essays on corporate debt mix, maturity structure, and inside debt compensation
1 online resource (178 pages) : PDF
University of North Carolina at Charlotte
In Chapter 1, we use a large sample of new debt to examine the determinants of corporate debt mix and to test the substitute/complement effects among debt sources. We find that both firm-level factors and macroeconomic variables are important determinants of debt mix. In addition, the set of determinants varies across time and economic conditions. In general, we find evidence for a substitution effect between public debt and private debt, both at rating downgrades and new issuance events. In Chapter 2, we examine the impacts of product market competition and corporate governance on debt maturity. We find that firms in less competitive industries use more short-term maturity than firms in more competitive industries, while firms with weak corporate governance use less short-term maturity. However, there is mixed evidence on the impact of the interaction between product market competition and corporate governance on maturity.In Chapter 3, we study the relations between inside debt compensation and corporate policies. We find a positive relationship between inside debt and leverage, indicating that CEOs with higher inside debt holdings tend to use higher leverage. We also find strong (weak) evidence on the negative relationship between inside debt and R&D activities (capital expenditures). We provide the first evidence about the relationship between inside debt and debt maturity. In one direction, short-term maturity increases in inside debt. However, in other direction, inside debt decreases in short-term maturity. Additionally, we document new evidence about the determinants of inside debt.
CORPORATE GOVERNANCEDEBT MATURITYDEBT MIXINSIDE DEBT COMPENSATIONPRODUCT MARKET COMPETITION
King, Tao-Hsien Dolly
Tian, WeidongClark, StevenCampbell Jr., Harrison
Thesis (Ph.D.)--University of North Carolina at Charlotte, 2013.
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