maturity. We find that in the absence of financing constraints short-term debt maximizes firm value. In contrast with most … revenues, issuing long term debt that expires after the investment option maturity. This effect, which is due to the option …

This study revisits the relation between firms' choices of debt maturity and their investment in a dynamic world. Prior … optimal maturity by balancing these opposing forces. For the firm with average investment and financing, the agency cost … firms' flexibility in choosing maturity. I also measure firm-specific agency costs using likelihood-based structural …

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 …

We show that firms’ debt maturity structure plays an important role in investment above and beyond that of leverage …. Firms with a longer debt maturity structure tend to invest more. These results are stronger for firms with high leverage …, profitability, and growth potential. We rationalize our results in a model in which debt maturity structure is determined by the …

We introduce long-term debt and a maturity choice into a dynamic model of production, firm financing, and costly …. The model generates rich distributions of maturity choices, leverage ratios, and credit spreads across firms. It explains …' maturity choice matters for policy: A financial reform which increases investment and output in a standard model of short …