# **Table 3  - Determinants of debt maturity structure**

The tables below present our estimation results for the determinants of corporate debt maturity structure. The dependent variable is the average ratio of short-term debt to total debt of firms in each of the countries in our sample (STD/TD). The explanatory variables in Panel A are credit information quality for model (1), all of the above plus macroeconomic environment in model (2), and finally all of the above plus firm characteristics in model (3). The explanatory variables in Panel B are credit information quality and legal institutions in model (1), all of the above plus financial development and macroeconomic environment in model (2), and finally all of the above plus firm characteristics in model (3). Panel A includes country and year effects whereas Panel B includes only year effects. The p-values are in parentheses, calculated with White standard errors to correct for potential heteroskedasticity. Bold coefficients indicate a statistical significance level of at least 10%.

## **<u>Panel A:</u>**

|DependentVariable|STD/TD|(1)||(2)||(3)||
|---|---|---|---|---|---|---|---|
||Constant|**48.45**|(0.00)|**48.56**|(0.00)|**111.08**|(0.00)|
|Credit Information Quality|D Private Credit Bureau|**-3.86**|(0.00)|**-3.58**|(0.00)|**-2.95**|(0.01)|
||D Public CreditRegistry|-1.21|(0.40)|-0.68|(0.66)|0.03|(0.98)|
|Macro Environment|GDP Growth|||**-0.16**|(0.02)|**-0.14**|(0.01)|
||Inflation|||**0.01**|(0.06)|**0.04**|(0.00)|
|Firm Characteristics|Log of Total Assets|||||**-4.61**|(0.00)|
||Return on Assets|||||**-0.17**|(0.01)|
||Fixed Assets /Total Assets|||||8.13|(0.25)|
||Dispersionof Default Risk|||||0.03|(0.57)|
|CountryFixedEffects|DCountry|Yes||Yes||Yes||
|Year FixedEffects|D Year|Yes||Yes||Yes||
||R-squared (within)|0.12||0.13||0.30||
||R-squared (overall)|0.92||0.93||0.94||
||Observations|461||452||434||
|**Panel B:**||||||||
|DependentVariable|STD/TD|(1)||(2)||(3)||
||Constant|**62.39**|(0.00)|**54.66**|(0.00)|**128.54**|(0.00)|
|Credit Information Quality|Private Credit Bureau Cov.|**-0.08**|(0.00)|**-0.08**|(0.00)|**-0.06**|(0.01)|
||Public Credit Registry Cov.|-0.03|(0.54)|**-0.10**|(0.07)|-0.02|(0.67)|
||Accounting Standards|-0.09|(0.18)|**-0.14**|(0.07)|**-0.16**|(0.07)|
|Legal Institutions|D Common Law|**-5.15**|(0.00)|**-5.28**|(0.00)|**-5.83**|(0.00)|
||Shareholder Rights|-0.61|(0.27)|0.69|(0.26)|0.20|(0.74)|
||Creditor Rights|**3.85**|(0.00)|**2.90**|(0.00)|**2.59**|(0.00)|
||Corruption|**2.17**|(0.00)|**1.72**|(0.00)|**2.18**|(0.00)|
|Financial Development|Deposit /GDP|||**0.10**|(0.00)|**0.08**|(0.00)|
||Private Bond /GDP|||-1.62|(0.44)|2.57|(0.21)|
||Bank Costs /Assets|||5.41|(0.87)|-3.05|(0.93)|
||D Financial Center|||**-3.81**|(0.01)|-0.01|(0.99)|
||D Banking Crisis|||**5.78**|(0.00)|**6.23**|(0.00)|
|Macro Environment|GDP Growth|||-0.11|(0.46)|-0.13|(0.44)|
||Inflation|||0.01|<br>(0.59)|<br>**0.07**|<br>(0.02)|
||D Developed Country|||-1.16|(0.53)|**-3.52**|(0.06)|
|Firm Characteristics|Log of Total Assets|||||**-3.79**|(0.00)|
||<br>Return on Assets|||||**-0.31**|<br>(0.02)|
||Fixed Assets /Total Assets|||||**-41.88**|(0.00)|
||Dispersionof Default Risk|||||**-0.34**|<br>(0.00)|
|Year FixedEffects|D Year|Yes||Yes||Yes||
||R-squared|0.44||0.55||0.63||
||Observations|370||331||319||

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