Acta Metallurgica Sinica(English letters) ›› 2011, Vol. 13 ›› Issue (1): 71-79.

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Corporate Boards and the Leverage and Debt Maturity Choices

  

  1. 1School of Economics and Management, Beijing University of Posts and Telecommunications,
    Beijing 100876, China;2School of Economy, Northeast Normal University, Changchun  130024,China
  • Received:2010-11-16 Online:2011-02-28 Published:2011-02-28

Abstract:

Debt,and in particular, shortterm debt have the potential to discipline managersThis study examines the role of corporate board in making financing decisions that provide this disciplineSpecifically, we predict that stronger boards will force the firm to hold more debt and more shortterm debtEmploying a rich dataset of board characteristics and controlling for previously identified determinants of leverage and debt maturity, we model leverage and debt maturity as jointly endogenousWe find certain support for these hypotheses

Key words: corporate boards, leverage;debt maturity, listed companies

CLC Number: