1 A NEW DETERMINANT OF DEBT MATURITY STRUCTURE: THE OWNERSHIP AND CONTROL STRUCTURE

This paper provides an empirical analysis of the determinants of Debt Maturity Structure. Besides the determinants investigated by previous literature (growth opportunity set, size, quality and asset maturity), this work attempts to examine a possible relation between Debt Maturity and Ownership Structure. We consider th concentration of ownership inside the major shareholding and the presence of a large external shareholder as a major stockholders to be relevant. Moreover, we attempt to investigate what possible influence could come from the different identity of investors. In this way, we investigate the impact of managerial ownership and the presence of institutional investors. In doing so, we use a sample of 200 UK no- inancial companies from 1990 to 1999 in order to run a cross-secti nal study in 1999 and one with average values. From traditional determinants point of view, we find support for the cost-contracting hypothesis, but not for the “signalling hypothesis”. From ownership side, we find consistency with “large shareholders hypothesis”, but not with “control hypothesis”. There is weak evidence supporting the “institutional investors hypothesis” and no support to the “managerial ownership hypothesis”