Gurov I.N., Burdin T.T. INFLATION UNCERTANTY INFLUENCE ON CORPORATE DEBT TERM STRUCTURE

DOI: https://doi.org/10.15688/ek.jvolsu.2021.4.12

Ilya N. Gurov

Candidate of Sciences (Economics), CFA, Associate Professor, Department of Finance and Credit, Lomonosov Moscow State University, Leninskie gory, 1, Bld. 46, 119991 Moscow, Russian Federation, This email address is being protected from spambots. You need JavaScript enabled to view it. , https://orcid.org/0000-0003-4057-9101

Tikhomir T. Burdin

Postgraduate Student, Department of Finance and Credit, Lomonosov Moscow State University, Leninskie gory, 1, Bld. 46, 119991 Moscow, Russian Federation, This email address is being protected from spambots. You need JavaScript enabled to view it. , https://orcid.org/0000-0002-2293-7908


Abstract.  The subject of this study is the long-term financial indebtedness of companies. The purpose of the article is to identify the constraints that inflationary processes impose on the temporary structure of debt financing for capital-intensive companies. During the study, such scientific methods as analysis, synthesis, longitudinal method, as well as methods of quantitative analysis were used. The authors showed that companies take the service life and payback of their assets into account when choosing the time structure of long-term debt, which confirms the hypothesis that the service life of assets and the time structure of financial liabilities are consistent. At the same time, the uncertainty of inflationary expectations in developing countries has a statistically significant negative impact on the ability of companies to attract long-term financing. The limited availability of long-term financing for companies from developing countries leads to the fact that such companies are forced to abandon the implementation of long-term projects with a positive net present value.

Key words: corporate debt maturity, capital-intense companies, inflation, inflation expectations, inflation expectations uncertainty.

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INFLATION UNCERTANTY INFLUENCE ON CORPORATE DEBT TERM STRUCTURE by Gurov I.N., Burdin T.T. is licensed under a Creative Commons Attribution 4.0 International License.

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