All that glitters is not gold, the corporate debt maturity structure of Asia Pacific

Abstract

We show that the debt maturity structure of non-financial corporates in Asia Pacific has been generally decreasing over the last two decades. The percentage of total outstanding debt that have a maturity of over 3 years to total outstanding of debt decreased from 66% at the end of 2000 to 46% at the end of 2019, while the median percentage decreased from 40% to 26% over the same period. The decreasing trend could amplify adverse effects caused by credit and liquidity shock. Our result shows that both firms-specific and macroeconomic factors can explain the trend in both advanced economies and emerging market economies, this in turn providing relevant policy implications for policy-makers to contain rollover risk triggered by shortening debt maturity structure in the Asia Pacific.

Date of Award	2021
Original language	English
Awarding Institution	The Hong Kong University of Science and Technology
Supervisor	Yangguang HUANG (Supervisor)