The impact of organizational capital on corporate debt maturity structure choices

Abstract

We examine the relationship between organizational capital and corporate debt maturity choices using a sample of U.S. public firms from 1990 to 2017. Our findings show that firms with higher organizational capital prefer shorter debt maturities. This positive effect is consistent over time and remains robust even after accounting for firm-specific, macroeconomic factors, and alternative definitions of our variable of interest. Cross-sectional analyses show that the effect of organizational capital is magnified in fast-growing firms but moderated in firms experiencing financial distress.