A Theory of Debt Maturity: The Long and Short of Debt Overhang

Debt maturity influences debt overhang, the reduced incentive for highly levered borrowers to make real investments because some value accrues to debt. Reducing maturity can increase or decrease overhang even when shorter term debt's value depends less on firm value. Future overhang is more vol...

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Bibliographic Details
Published in:The Journal of finance (New York) 2014-04, Vol.69 (2), p.719-762
Main Authors: DIAMOND, DOUGLAS W., HE, ZHIGUO
Format: Article
Language:English
Subjects:
Assets
Correlation
Correlation analysis
Debt
Debt management
Debt refinancing
Financial instruments
Financial investments
Firm value
Future
Fälligkeit
Incentives
Investitionsentscheidung
Investment analysis
Investment policy
Investment value
Investments
Loan defaults
Long term debt
Long term investments
Maturity
Short term debt
Short term investments
Studies
Theorie
Unternehmenswert
Verbindlichkeiten
Volatility
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