Program and Development Research

Program and Development Research

The Effect of Economic Policy Uncertainty on the Maturity Structure of a Company's Debt

Document Type : Original Article

Authors
1 Professor, Department of Economics, Faculty of Economics, University of Tehran, Tehran, Iran (Corresponding author).
2 PhD student, Department of Economics, Ares International University, Tehran University Campus, Tehran, Iran.
3 Assistant Professor, Department of Islamic Economics, Faculty of Economic and Administrative Sciences, University of Qom, Qom.
10.22034/pbr.2025.483956.1466
Abstract
One of the most important goals of companies is to determine the best mix of financing sources, or capital structure. Most companies use some type of debt in their capital structure. Debt structure is one of the important indicators that determine the success of a company. In this study, the effect of economic policy uncertainty on the debt maturity structure of companies listed on the Tehran Stock Exchange was examined. To determine the statistical sample, the systematic elimination method was utilized, and 106 companies listed on the Tehran Stock Exchange were examined during the period 2011-2023. The findings of this study showed that economic policy uncertainty has an effect on the debt maturity structure of companies listed on the Tehran Stock Exchange and increases the debt maturity of the companies under study. The results also show that the higher the credit rating, the higher the maturity of the company's debts and subsequently the cost of financing decreases; however, no significant relationship was found regarding the effect of the company's financial constraints and company size.
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Subjects


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