Debt maturity and the marginal value of cash holdings

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2024-10-28 DOI:10.1016/j.frl.2024.106352

Hail Jung , Sanghak Choi

引用次数: 0

Abstract

This study investigates the impact of debt maturity on the marginal value of cash holdings. It posits that short-term debt acts as a crucial governance mechanism by reducing agency conflicts and aligning managerial actions with shareholder interests. Using a sample of U.S. public firms, the results indicate that firms with higher proportions of short-term debt have a greater marginal value of cash, reflecting more efficient resource allocation and reduced managerial opportunism. The necessity for frequent capital market interactions associated with short-term debt mitigates agency conflicts. Additionally, the study explores three potential mechanisms: financial constraints, managerial moral hazard, and information asymmetry.

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债务期限和现金持有量的边际价值

本研究探讨了债务期限对现金持有边际价值的影响。研究认为，短期债务是一种重要的治理机制，它可以减少代理冲突，使管理者的行为与股东利益保持一致。以美国上市公司为样本，研究结果表明，短期债务比例较高的公司现金边际值更高，这反映了资源配置效率更高，管理者机会主义减少。与短期债务相关的资本市场频繁互动的必要性缓解了代理冲突。此外，研究还探讨了三种潜在机制：财务约束、管理道德风险和信息不对称。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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