Does Societal Trust Influence Corporate Debt Maturity? International Evidence

Ying‐Chieh Wang; Zhi‐Yuan Feng; Yu‐Te Lien; Sharon. S. Yang

doi:10.1111/infi.70021

journal article Jan 12, 2026

Does Societal Trust Influence Corporate Debt Maturity? International Evidence

Ying‐Chieh Wang Zhi‐Yuan Feng

Yu‐Te Lien Sharon. S. Yang

International Finance Vol. 29 No. 1 pp. 186-204 · Wiley

View at Publisher Save 10.1111/infi.70021

Abstract

ABSTRACT
This article analyses data from 26 countries to examine the effects of societal trust levels on corporate debt maturity. Empirical evidence shows that companies operating in countries with higher societal trust exhibit longer debt maturities. The study also investigates the moderating role of investor protection on the relationship between societal trust and debt maturity, particularly focusing on the effectiveness of legal institutions, legal strength, and political stability. The results reveal that firms in countries with stronger investor protections experience a more pronounced positive impact of societal trust on debt maturity. Additionally, the study addresses potential endogeneity issues, firm fixed effects, and self‐selection biases to ensure that the results are consistent and reliable.

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Details

Published: Jan 12, 2026
Vol/Issue: 29(1)
Pages: 186-204
License: View

Authors

Y

Ying‐Chieh Wang

Ming Chuan University Taipei Taiwan

Z

Zhi‐Yuan Feng

Department of Finance National Sun Yat‐sen University Kaohsiung Taiwan

Y

Yu‐Te Lien

Department of Finance National Sun Yat‐sen University Kaohsiung Taiwan

S

Sharon. S. Yang

Department of Money and Banking National Chengchi University Taipei Taiwan

Cite This Article

Ying‐Chieh Wang, Zhi‐Yuan Feng, Yu‐Te Lien, et al. (2026). Does Societal Trust Influence Corporate Debt Maturity? International Evidence. International Finance, 29(1), 186-204. https://doi.org/10.1111/infi.70021

Does Societal Trust Influence Corporate Debt Maturity? International Evidence

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