Jun, Sang-Gyung; Jen, Frank C - In: Review of Quantitative Finance and Accounting 20 (2003) 1, pp. 5-34
In this paper, we suggest the trade-off model to explain the choice of debt maturity. This model is based on balancing between risk and reward of using shorter-term loans. Shorter-term loans have cost advantage over, but incur higher refinancing and interest rate risk than longer-term loans....
