Inside Debts or Outside Debts: Do Senior Executives Influence the Structure of Debts

The purpose of this study is to analyze the structure of debts in different aged group, as well as executive pension arrangements. For whom aged under 50 categorizes as the junior executive group, while for whom aged above 50 categorizes as the senior executive group. The dataset is selected from Wharton Research Data Services with annual base. The variables are choosing from firm characteristics and executive characteristics. Among our findings, junior executives prefer to rely on the inside debts rather than outside debts. Senior executives are using different managerial strategies. The credit ratings might be the main factor to influence both of inside debts and outside debts. Based on different environment and target, the firms have specific strategies to run the debts.