Labor protection and corporate Debt maturity: International evidence

Mohamed Belkhir, Hamdi Ben-Nasr, Sabri Boubaker

    Research output: Contribution to journalArticlepeer-review

    26 Citations (Scopus)


    This paper investigates the impact of labor protection on corporate debt maturity structure. We hypothesize that stronger labor protection is conducive to a greater use of short-term debt maturity by firms. Using various country-level indicators as measures of labor protection, and a sample of 114,594 firm-years from 43 countries over the 1990-2010 period, we document robust evidence that firms located in countries where labor enjoys a strong protection tend to borrow more short-term. Our analysis suggests that labor protection is an important institutional factor that plays a role in determining the maturity structure of corporate debt over-and-above economic, legal, and political factors identified in prior research.

    Original languageEnglish
    Pages (from-to)134-149
    Number of pages16
    JournalInternational Review of Financial Analysis
    Publication statusPublished - May 1 2016


    • Agency theory
    • Debt maturity
    • Information asymmetry
    • Institutions
    • Labor protection

    ASJC Scopus subject areas

    • Finance
    • Economics and Econometrics


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