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 language | English |
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Pages (from-to) | 231-247 |
Number of pages | 17 |
Journal | Afro-Asian Journal of Finance and Accounting |
Volume | 5 |
Issue number | 3 |
DOIs | |
Publication status | Published - 23 Jun 2015 |
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