Accruals Quality and Debt Maturity Structure

23 Pages Posted: 4 Jun 2010

Abstract

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.

Suggested Citation

García-Teruel, Pedro J. and Martínez-Solano, Pedro and Sánchez-Ballesta, Juan P., Accruals Quality and Debt Maturity Structure. Abacus, Vol. 46, No. 2, pp. 188-210, June 2010, Available at SSRN: https://ssrn.com/abstract=1613337 or http://dx.doi.org/10.1111/j.1467-6281.2010.00312.x

Pedro J. García-Teruel (Contact Author)

University of Murcia ( email )

Department of Management and Finance
Murcia, 30100
Spain
34 868887828 (Phone)
34 868887537 (Fax)

HOME PAGE: http://webs.um.es/pjteruel/miwiki/doku.php

Pedro Martínez-Solano

University of Murcia ( email )

Dpt. Management and Finance
Murcia, Murcia 30100
Spain
34 868 883 747 (Phone)
34 868 887 537 (Fax)

HOME PAGE: http://webs.um.es/pmsolano

Juan P. Sánchez-Ballesta

University of Murcia ( email )

Avda Teniente Flomesta, 5
Murcia, Murcia 30100
Spain

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
2
Abstract Views
1,809
PlumX Metrics