Abstract
As an important part of the debt financing decision, the choice of debt maturity structure will not only affect investment and financing cost, corporate governance and liquidity risk, but also be directly related to the distribution of interests between the creditor and debtor. In fact, debt maturity structure can be regarded as an endogenous result of one social economic system in a particular development stage. Therefore, it owns important theoretical significance and application value to study the effect of institutional environments on debt maturity structure. Using theoretical analysis, this paper introduces institutional environments into the standard debt maturity model established by Holmstrom and Tirole (1998, 2000). And then, this paper constructs a theoretical model under this situation and examines the influence of institutional environment on debt maturity structure, through solving the mathematical model, theoretical derivation, comparative static analysis and numerical simulation. The theoretical research results show that, debt maturity structure is shortened with the improvement of institutional environment.
