Accruals Quality and Debt Maturity Structure

• Autores: Pedro Juan García Teruel, Pedro Martínez Solano, Juan Pedro Sánchez Ballesta
• Localización: Abacus: A journal of accounting, finance and business studies, ISSN 0001-3072, Vol. 46, Nº 2, 2010, págs. 188-210
• Idioma: inglés
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• Resumen

  • In this paper we use panel data and GMM estimation to examine the effect of accounting quality on debt maturity structure in a bank-based financial system and show that, even after controlling for unobservable heterogeneity, endogeneity, variables reflecting operating volatility and the cost of debt, firms with poor accounting quality face a shorter debt term than firms with higher accounting quality. This association between accounting quality and debt maturity is consistent with accounting quality as a means of reducing information asymmetry problems and improving the monitoring of managers.