DIAMOND, DOUGLAS W.; HE, ZHIGUO - In: Journal of Finance 69 (2014) 2, pp. 719-762
type="main" <title type="main">ABSTRACT</title> <p>Debt maturity influences debt overhang, the reduced incentive for highly levered borrowers to make real investments because some value accrues to debt. Reducing maturity can increase or decrease overhang even when shorter term debt's value depends less on firm value. Future...</p>