Purpose

We examine how business group affiliation affects corporate debt maturity.

Design/methodology/approach

This study employs the financial data of all listed Indian companies obtained from the CMIE database for 2011–2018. The ordinary least square, firm-fixed effect and Fama–Macbeth regression methods are used for empirical analysis. We use propensity score matching and difference-in-difference method to address endogeneity issues. Further, two-stage least square (2SLS) regression is performed to mitigate the endogeneity that stems from simultaneity between debt maturity and leverage.

Findings

Using Indian firms, we report that group affiliation is positively associated with corporate debt maturity; group firms use more long-term debt compared to similar standalone firms. We also observe that the positive effect of group affiliation on debt maturity is more pronounced in business group firms associated with a group having more resources and having unrelated diversification. However, information asymmetry and moral hazard problems weaken the impact of group affiliation on debt maturity structure of a firm. Overall, our results are consistent with co-insurance benefits that are an argument for the presence of business groups in emerging markets.

Originality/value

This study contributes to the existing literature by testing the role of group affiliation on corporate debt maturity decisions in the Indian market context where market imperfections persuade firms to borrow from banks. This is also the first study on determinants of corporate debt maturity that distinguishes between public and private debt.

中文翻译：

---

集团隶属关系和公司债务到期：共同保险或征用

目的

我们研究了业务集团从属关系如何影响公司债务到期日。

设计/方法/方法

本研究采用从 CMIE 数据库中获得的所有印度上市公司 2011-2018 年的财务数据。普通最小二乘法、企业固定效应和 Fama-Macbeth 回归方法用于实证分析。我们使用倾向得分匹配和差异中的差异方法来解决内生性问题。此外，执行两阶段最小二乘 (2SLS) 回归以减轻因债务到期日和杠杆之间的同时性而产生的内生性。

发现

我们使用印度公司报告说，集团隶属关系与公司债务到期日呈正相关；与类似的独立公司相比，集团公司使用更多的长期债务。我们还观察到，集团隶属关系对债务到期日的积极影响在与拥有更多资源和不相关多元化的集团相关联的企业集团公司中更为明显。然而，信息不对称和道德风险问题削弱了集团从属关系对企业债务期限结构的影响。总体而言，我们的结果与共同保险利益一致，共同保险利益是新兴市场存在商业团体的论据。

原创性/价值

本研究通过测试集团从属关系对印度市场背景下公司债务到期决策的作用，在市场不完善说服公司向银行借款的情况下，为现有文献做出了贡献。这也是对区分公共债务和私人债务的公司债务到期决定因素的首次研究。