This study re-examines the impact of asset maturity on debt maturity choices. The pertinent literature suffers from the fact that asset maturity typically is hard to observe. In this paper we exploit the fact that for energy utilities asset maturity can directly be measured. Using a sample of...

We examine how production flexibility affects financial leverage. A worldwide sample of energy utilities allows us to apply direct measures for production flexibility based on their power plants. We find that production flexibility increases financial leverage. For identification, we exploit...