The Relationship Between Leverage, Maturity, and Investment Decision: Evidence From Emerging Markets

IF 0.9 Q3 ECONOMICS

Organizations and Markets in Emerging Economies Pub Date : 2019-05-28 DOI:10.15388/OMEE.2019.10.00008

V. Nugroho, Kim Sung Suk

引用次数: 3

Abstract

In this paper, we examine simultaneous relationship between leverage, maturity and over(under)- investment in emerging markets. We divide leverage into short term and long term to investigate the relation between current and future simultaneous relationship between leverage and investment decision, between debt maturity and investment decision, and between leverage and debt maturity. This research used twenty emerging market data from 2006 – 2016. First of all, our results show that firms in emerging markets prefer to use short-term debt to long-term debt to minimize the underinvestment problem. Second, there is a simultaneous non-linear relation between long-term leverage and growth opportunities in emerging markets firms. Third, long-term debt has non-linear effects on investment decision in emerging markets firms. It can be concluded that firms in emerging markets have different characteristics with regard to their capabilities to manage the interaction between leverage, maturity and investment compared to developed markets.

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杠杆率、成熟度和投资决策之间的关系：来自新兴市场的证据

在本文中，我们考察了新兴市场杠杆率、到期日和过度（不足）投资之间的同时关系。我们将杠杆分为短期和长期，以研究当前和未来杠杆与投资决策、债务到期与投资决策以及杠杆与债务到期之间的关系。这项研究使用了2006-2016年的20个新兴市场数据。首先，我们的研究结果表明，新兴市场的公司更喜欢使用短期债务而不是长期债务，以最大限度地减少投资不足的问题。其次，新兴市场企业的长期杠杆和增长机会之间同时存在非线性关系。第三，长期债务对新兴市场企业的投资决策具有非线性影响。可以得出结论，与发达市场相比，新兴市场的企业在管理杠杆、成熟度和投资之间的互动方面具有不同的特征。

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

Organizations and Markets in Emerging Economies ECONOMICS-

CiteScore

1.60

自引率

0.00%

发文量

审稿时长

20 weeks

期刊介绍： The journal aims to contribute to the development and dissemination of multidisciplinary knowledge on organizations and markets in emerging economies, to increase dialogue among scholars focused on a specific emerging economy or region and to encourage and give an outlet to high quality scholarship, both local and international, to this subject. Organizations and Markets in Emerging Economies welcomes analysis of emerging economies from the perspectives of organizational sciences, marketing, economics, finance and related disciplines. The journal appreciates studies that highlight specificities and patterns that occur in emerging economies and develop new empirical and theoretical knowledge on the subject.