Market differences and adjustment speed of debt, equity, and debt maturity
Küçük Resim Yok
Tarih
2021
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Sage Publications Ltd
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
This article investigates the role of market differences and the global financial crisis 2007-2009 (GFC) on the adjustment speed of debt issuance, equity issuance, and debt maturity. The sample of 9731 firm-years from highly regulated Main Market (MAIN) and slightly unregulated Alternative Investment Market (AIM) in the United Kingdom was used. Employing system generalized methods of moments, the findings show that AIM firms have a faster adjustment speed of debt and equity before the GFC than MAIN firms. However, it is vice versa after the GFC because AIM firms face greater problems in accessing finance due to the shrinkage of bank credits during the recession. Besides, MAIN firms have faster adjustments on long-term debt over the time, whereas AIM firms have faster adjustment speed of trade credits. Overall, investors should consider market differences and recessions to take accurate decisions on debt-equity and debt maturity to invest where and when. JEL Classification: C26, G01, G32
Açıklama
Anahtar Kelimeler
Adjustment speed, Alternative Investment Market, debt, debt maturity, equity, financial crisis
Kaynak
Australian Journal of Management
WoS Q Değeri
Q3
Scopus Q Değeri
Q1
Cilt
46
Sayı
4
