develop a theory of the mechanism, provide empirical evidence, evaluate the ability of the quantitative theory to match the …

worsens financing terms for firms with shorter maturity projects, inducing them to change their investments as well. In …

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 …

critically on debt maturity; nonetheless, in equilibrium shareholders are indifferent toward the debt maturity structure … voluntarily reduce debt. On the other hand, countervailing effects of asset growth and debt maturity cause leverage to mean …

-varying debt maturity choices, as well as its implications for the term structure of credit spreads. Compared to short-term debt … liquidity costs changing over the business cycle, our calibrated model implies that debt maturity is pro-cyclical, firms with … high systematic risk favor longer debt maturity, and that these firms will have more stable maturity structures over the …