Debt maturity, financial crisis and corporate performance in GCC countries

a dynamic-GMM approach

Rami Zeitun, Munshi Masudul Haq

    Research output: Contribution to journalArticle

    3 Citations (Scopus)

    Abstract

    This study investigates the effect of debt financing and debt maturity on corporate performance, using evidence from Gulf Cooperation Council countries (GCC): Qatar, Oman, Kuwait, Kingdom of Saudi Arabia, United Arab Emirates, and Bahrain. The study uses a dynamic GMM approach for an unbalanced sample of 400 firms for the period 2004-2012. The study also investigates the effects of the financial crisis on the significance of long-term and short-term debt financing as determinants of firms' performance. Our findings indicate that the long-term and short-term debt financing affect firms' performance negatively. The results also show that the economic importance of short-term debt increases as a determinant of firms' performance after crisis, while the effect of long-term debt decreases.

    Original languageEnglish
    Pages (from-to)231-247
    Number of pages17
    JournalAfro-Asian Journal of Finance and Accounting
    Volume5
    Issue number3
    DOIs
    Publication statusPublished - 23 Jun 2015

    Fingerprint

    Corporate performance
    Gulf Cooperation Council
    Firm performance
    Short-term debt
    Debt financing
    Financial crisis
    Debt maturity
    Economics
    Bahrain
    Qatar
    Kuwait
    Long-term debt
    United Arab Emirates
    Saudi Arabia
    Oman

    Keywords

    • debt structure
    • debt maturity
    • debt financing
    • firm performance
    • financial crisis
    • corporate performance
    • GCC countries
    • Gulf Cooperation Council
    • Qatar
    • Oman
    • Kuwait
    • Saudi Arabia
    • United Arab Emirates
    • UAE
    • Bahrain
    • dynamic GMM
    • generalized method of moments

    Cite this

    Debt maturity, financial crisis and corporate performance in GCC countries : a dynamic-GMM approach. / Zeitun, Rami; Haq, Munshi Masudul.

    In: Afro-Asian Journal of Finance and Accounting, Vol. 5, No. 3, 23.06.2015, p. 231-247.

    Research output: Contribution to journalArticle

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