This study examined the causal factors concerning the timing of debt maturity structure issuance for public and private debt securities in Malaysia and Singapore. Data of 1,157 Malaysian and Singaporean listed firms were utilised between 1996 and 2019. The two-step system generalised moment (GMM) method showed that macroeconomic factors such as inflation and excess bond return are crucial in influencing Malaysia's issuance of long-term private debt securities. There was also evidence that inflation explained the issuance of long-term private debt securities in Singapore. Firms preferred to issue fewer long-term private debt securities when inflation is high. Furthermore, it was found that Malaysian firms issued public and private debt securities and Singaporean firms issued private debt securities successfully time their debt maturity structure. This study's findings offered several policy implications as they helped firms identify the proper time to issue the debt maturity structure of public and private debt securities. This identification contributed to achieving an optimal debt maturity structure, maximising the firms’ value, healthy business environment and stable economic growth.
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In-Text Citation: (Wahab, 2022)
To Cite this Article: Wahab, N. M. A. (2022). Timing of Debt Maturity Structure: Evidence From Public and Private Debt Securities Issued By Malaysian and Singaporean Non-Financial Listed Firms. International Journal of Academic Research in Business and Social Sciences, 12(3), 580–597.
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