The effect of managerial discretion on the maturity structure of corporate public debt: Evidence on publicly-listed firms in the Philippines

Date of Publication

2015

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Kenneth L. Yumang

Defense Panel Member

Maylene Paniza
Michael Ricafort


Abstract/Summary

The Philippine corporate debt market is emerging. Continuous inflow of new issuers of bonds that are made available to the public is becoming a regular event. This study explores the relation between managerial discretion and the maturity structure of corporate public debt. Using a sample of corporate bonds issued by the publicly-listed companies in the Philippines over the 2010-2014, the study's results reveal that managerial ownership have ambiguous effects on the maturity of public debt. Firms with higher managerial ownership have higher Tobin's Q. These results indicate that bondholders are concerned about the potential costs from risk taking activities, thereby decreasing the length of maturity for corporate public debt. In addition, firms with higher managerial ownership face higher yield spreads.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21585

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

xcix leaves : illustrations (some color) ; 29 cm.

Keywords

Corporate debt--Philippines; Corporate bonds--Philippines

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