Corporate culture and debt maturity

Abstract

This study investigates the relationship between corporate culture and debt maturity structure. Utilizing a text-based measure of corporate culture derived from a cutting-edge machine learning approach, we uncover a strong positive link between corporate culture and short-term debt usage. We further find that this relationship is particularly pronounced for firms with high information asymmetry and heightened financing constraints. We conduct several sensitivity analyses that confirm the robustness of our findings. Overall, the findings enhance our understanding of how corporate culture influences corporate financing decisions.