Managerial Stock Ownership and the Maturity Structure of Corporate Debt

32 Pages Posted: 23 Jul 2004

See all articles by Sudip Datta

Sudip Datta

Wayne State University - Finance Department

Kartik Raman

Bentley University

Mai Iskandar-Datta

Wayne State University - Finance Department

Abstract

This study documents that managerial stock ownership plays an important role in determining corporate debt maturity. Controlling for previously identified determinants of debt maturity and modeling leverage and debt maturity as jointly endogenous, we document a significant and robust inverse relation between managerial stock ownership and corporate debt maturity. We also show that managerial stock ownership influences the relation between credit quality and debt maturity, and growth opportunities and debt maturity.

Keywords: managerial ownership, debt maturity structure,corporate governance

JEL Classification: G30, G32

Suggested Citation

Datta, Sudip and Raman, Kartik and Iskandar-Datta, Mai E., Managerial Stock Ownership and the Maturity Structure of Corporate Debt. Available at SSRN: https://ssrn.com/abstract=568343 or http://dx.doi.org/10.2139/ssrn.568343

Sudip Datta (Contact Author)

Wayne State University - Finance Department ( email )

328 Prentis Bldg.
5201 Cass Avenue
Detroit, MI 48202
United States
(313) 577- 0408 (Phone)
(313) 577-0058 (Fax)

Kartik Raman

Bentley University ( email )

175 Forest Street
Waltham, MA 02154
United States

Mai E. Iskandar-Datta

Wayne State University - Finance Department ( email )

328 Prentis Bldg.
5201 Cass Avenue
Detroit, MI 48202
United States
(313) 577-9509 (Phone)

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