Corporate governance attributes and listed SMES’ debt maturity

• Published in: Corporate governance (Bradford) Vol. 19; no. 4; pp. 735 - 750
• Main Authors: Briozzo, Anahí, Cardone-Riportella, Clara, García-Olalla, Myriam
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Publishing Limited 13.08.2019; Emerald Group Publishing Limited
• Subjects: Capital markets; Capital structure; Civil law; Conflicts of interest; Corporate governance; Equity; Hypotheses; Industrialized nations; International business; Investments; Short term; Short term debt; Small & medium sized enterprises-SME; Stockholders; Studies; Variables; Argentina; Spain; Financial management; OECD country and non-OECD country; Corporate governance; SMEs
• ISSN: 1472-0701; 1758-6054
• DOI: 10.1108/CG-11-2017-0272

Purpose This paper aims to develop a cross-country analysis of the similarities and differences in the debt maturity structure of listed SMEs from the point of view of corporate governance (CG) attributes in two different economic environments: an OECD (Spain) country and a non-OECD (Argentina) country. Design/methodology/approach Using data from listed SMEs in the Argentinian SME segment (pooled data from 2012 to 2015) and 31 listed SMEs in the Spanish Mercado Alternativo Bursátil for growing firms (MAB_GE)(2014), bivariate and multivariate analyses are performed. Findings Spanish firms with a higher ownership concentration and a large controlling shareholder have higher short-term liabilities (STL) ratios. Participation of women on the board has a negative relation with the STL ratio only for Spain. The participation of corporations in ownership and a Big4 auditor have a negative relation with the STL ratio for both countries. Practical implications These results will help SME managers understand the effects of the application of good governance policies. The study also gives regulators a guideline to develop standards to assist in efficient borrowing in terms of seeking funding in alternative capital markets. Originality/value First, the results provide evidence about the financial impact on the STL ratio of CG attributes in listed SME. Second, as far as the authors know, this is the first paper to analyse the CG attributes of listed SMEs in an OECD country and a non-OECD country. Third, the paper presents CG data derived from an ad hoc basis elaborated from different websites and databases.