AIM Firms' Debt Maturity: Do Auditor's Quality and Ownership Structure Matter?

ABSTRACT This study analyzes the two corporate governance mechanisms that affect the debt maturity structure of small and medium- sized enterprises (SMEs) listed on the Alternative Investment Market (AIM): Big 4 auditors and the firms’ ownership structure. Analyzing 227 listed SMEs (1998–2016) and applying both cross- sectional and panel data estimations, we find that: (a) there is a positive and significant relationship between Big 4 auditors and debt maturity; (b) firms with more ownership concentration have a higher fraction of long-term debt in their capital struc - ture; (c) although family firms are, on average, associated with shorter debt maturities, when they are audited by a Big 4, their debt maturity lengthens.