I provide novel evidence that institutional investors, by influencing the maturity structure of corporate debt, play an active monitoring role. First, I find that institutional ownership is positively related to short-term debt and this relationship is not only statistically significant, but...

We provide evidence that investment horizons of institutional shareholders affect firms' financing decisions. We find that short-term institutional ownership positively affects firms' likelihood of equity relative to debt issues, the size of equity issues, and the likelihood of long-term...

This paper examines whether and how institutional investment horizon influences corporate financing decisions. Consistent with our predictions, we find that longer institutional investment horizon is negatively associated with the likelihood that a firm issues equity and debt, and with the...