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

Rana Yassir Hussain; Wen Xuezhou; Haroon Hussain; Ilyas Ahmad; Hira Irshad; Muhammad Yasir Hayat Malik

doi:10.2478/zireb-2024-0007

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

Zagreb International Review of Economics and Business

Volume 27 (2024): Issue 1 (May 2024)

By: Rana Yassir Hussain, Wen Xuezhou, Haroon Hussain, Ilyas Ahmad, Hira Irshad and Muhammad Yasir Hayat Malik

Open Access

|Jun 2024

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.

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Articles in this issue

DOI: https://doi.org/10.2478/zireb-2024-0007 | Journal eISSN: 1849-1162 | Journal ISSN: 1331-5609

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Language: English

Page range: 137 - 154

Published on: Jun 3, 2024

Published by: University of Zagreb, Faculty of Economics & Business

In partnership with: Paradigm Publishing Services

Publication frequency: 2 issues per year

Keywords:

External Government Debt,

Short Debt Maturity,

Firm Attributes,

CPEC

Related subjects:

Business and economics,

Political economics,

Macroeconomics,

Public finance and fiscal theory,

Business management,

Marketing, sales, customer relations,

Management, organization, corporate governance

© 2024 Rana Yassir Hussain, Wen Xuezhou, Haroon Hussain, Ilyas Ahmad, Hira Irshad, Muhammad Yasir Hayat Malik, published by University of Zagreb, Faculty of Economics & Business
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Volume 27 (2024): Issue 1 (May 2024)