Stohs and Maurer (1996) or Morris
(1976) argue that a firm can face risk of not having sufficient cash in case
the maturity of the debt had shorter than the maturity of the assets or even
vice versa in case the maturity of the debt was greater than asset maturity (the
cash flow from assets necessary for the debt repayment terminates). Following
these arguments, the maturity matching principle belongs to the determinants of
the corporate debt maturity structure.
Showing posts with label Maturity matching theory in finance. Show all posts
Showing posts with label Maturity matching theory in finance. Show all posts
Friday, 4 May 2012
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