Firm Attributes and Government External Debt as Determinants of Corporate Short Debt Maturity in a Post-CPEC Scenario-Reference-Cited by-同舟云学术

Firm Attributes and Government External Debt as Determinants of Corporate Short Debt Maturity in a Post-CPEC Scenario

Published:2024-05-01 Issue:1 Volume:27 Page:137-154
ISSN:1849-1162
Container-title:Zagreb International Review of Economics and Business
language:en
Short-container-title:

Author:

Hussain Rana Yassir¹,Xuezhou Wen²,Hussain Haroon³,Ahmad Ilyas¹,Irshad Hira⁴,Malik Muhammad Yasir Hayat⁵

Affiliation:

1. UE Business School, Division of Management and Administrative Sciences , University of Education Lahore , Pakistan .

2. School of Business , Jiangnan University , Wuxi , China .

3. Malik Firoz Khan Noon Business School , University of Sargodha , Pakistan .

4. Department of Business and Management Sciences , Superior University , Sargodha , Pakistan .

5. Department of Mathematics, Division of Science and Technology , University of Education Lahore , Lahore , Pakistan .

Abstract

Abstract The current study investigates the influence of firm attributes and government external debt upon the short debt maturity of non-financial firms listed at the Pakistan Stock Exchange (PSX) in a post-CPEC (China Pakistan Economic Corridor) scenario. By using firm-level panel data, estimations are made through the random effect model with robust standard errors at the level and with lagged independent variables. We dealt endogeneity concerns by employing the system-GMM approach to the complete data sample of 331 firms over a period ranging from 2013 to 2017 and also the post CPEC period ranging from 2015 to 2017. The risk and asset tangibility are strong negative predictors of short debt maturity in Pakistani listed firms. The external debt had a positive and significant role in defining short debt maturity. These results were consistent for both the entire data period and the post CPEC period.

Publisher

Walter de Gruyter GmbH

Link

https://www.sciendo.com/pdf/10.2478/zireb-2024-0007

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