Original scientific paper
https://doi.org/10.2478/zireb-2024-0007
Firm Attributes and Government External Debt as Determinants of Corporate Short Debt Maturity in a Post-CPEC Scenario
Rana Yassir Hussain
; UE Business School, Division of Management and Administrative Sciences, University of Education Lahore, Pakistan
*
Wen Xuezhou
; School of Business, Jiangnan University, Wuxi, China
Haroon Hussain
; Malik Firoz Khan Noon Business School, University of Sargodha, Pakistan
Ilyas Ahmad
; UE Business School, Division of Management and Administrative Sciences, University of Education Lahore, Pakistan
Hira Irshad
; Department of Business and Management Sciences, Superior University, Sargodha, Pakistan
Muhammad Yasir
Hayat Malik
; Department of Mathematics, Division of Science and Technology, University of Education Lahore, Lahore, Pakistan
* Corresponding author.
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.
Keywords
External Government Debt; Short Debt Maturity; Firm Attributes; CPEC
Hrčak ID:
317826
URI
Publication date:
31.5.2024.
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