●저자 : Lee, Sang-Whi(경희대),An, Seung-Cheol(영남대)

●개요 :

We estimate a model that addresses the maturity of private placements, employing a sample of 191 facilities issued in Korea between 1996 and 2002. We find a negative relationship between maturity and borrowers growth options, consistent with the agency cost hypothesis that short-term debt can attenuate potential agency problems. Our results support that firms with larger earnings surprises issue longer-term debt, which indicates that Flannerys (1986) signaling theory of debt maturity is not supported in private placements of bond market in Korea. Consistent with Diamonds (1991) liquidity risk hypothesis, we find a non-monotonic relationship between credit risk and private placement maturity. We also document that the maturity of private placements increases with the borrowers equity shares owned by the financial institutions and foreign investors. Following Barclay, Mark, and Smith (2003) and Johnson (2003), an endogenous leverage specification allows an inverse relationship between leverage and the duration of private placements. Finally, we observe that firm size positively affects the debt maturity.