Empirical analysis of debt maturity, cash holdings and firm investment in developing economies

This study investigates the potential simultaneous relationships among leverage, debt maturity and cash holdings how these jointly affect financial policy firms' investment activities in developing countries of Thailand, Indonesia Singapore during period 2006–2015. Using two-step system GMM estimator, our results show that high-growth firms not only shorten to reduce underinvestment incentive, but also decrease leverage liquidity risk. We find evidence level is a key determinant all growth opportunities decision Thailand whereas more important Indonesia. These findings have significant implications for decisions economies.