Browsing by Author "Laryea, E.A."
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Item Corporate Governance, National Culture, and Corporate Debt Maturity Structure: Evidence from Sub-Saharan Africa(University of Ghana, 2013-06) Laryea, E.A.; Bokpin, G.; Gemegah, A.This study examines the impact of corporate governance and national culture on the debt maturity structure of firms in sub-Saharan Africa. A relatively unexplored area world- wide, the dearth of literature on debt maturity structure in Africa necessitates this study. This study sought to understand the impact that the corporate governance systems of sub- Saharan African firms have on corporate debt maturity on the basis of the argument that the debt maturity structure of a firm could augment the efforts of corporate governance systems in alleviating the agency problem of the firm. The study also found it worthwhile to explore the influence of national culture on the debt maturity decision based on the premise that the financial contractual environment within which the debt contract is agreed upon is made up of both formal and informal institutions like norms and values. The study employs a two-stage least square estimation technique and results suggest that the debt maturity structure of firms are explained by the corporate governance systems in place as well as the national culture of the people in the nation. The study therefore suggests that these two factors be carefully considered when the debt maturity structure decision is being made. The study finds that the financial systems in a country tell on the debt maturities of firms as well and recommends that in order to make more long-term debt available for development, policy makers must pay more attention to capital market development. The study also suggests that firm debt maturity decisions should be made bearing in mind the corporate governance system in place.