Trade-off theory states that the optimum debt maturity is determined by a dynamic trade-off between the tax advantages of debt and deadweight cost of bankruptcy as the firms recapitalize with debt depending upon the term structure of interest rate and asset volatility. Therefore, the corporate...

The study examines the determinants of debt maturity structure decisions, using a sample of companies chosen from two broad indices, viz., the BSE 500 and the CNX 500 index. The study results suggest that collateralizable assets and leverage are the important determinants of debt maturity...