The effect of sentiment on corporate debt maturity

Abstract

This final degree work attempts to establish a relationship between sentiment and debt maturity, two widely known concepts in business. Both have always been studied separately although previous studies could provide some clue about an actual link between them. 150 non-financial firms belonging to six of the strongest markets have been studied for the 2008-2017 period. A fixed effects regression has been carried out in order to examine our sample (represented as panel data). Results reject the hypothesis of a non-existent relationship between sentiment and debt maturity. Similarly, firm characteristics prove to shape this connection, where the overall effect of sentiment on maturity differs depending on the firm typology. Further studies are needed for a broad and more precise understanding of the influence of each firm characteristics.