CEO inside debt boosts access to cheaper short-term corporate financing.
The study found that CEOs who have a lot of debt tied to their company tend to use shorter-term debt. This is especially true for companies that are financially stable and don't need to worry about refinancing their debt. Having inside debt helps companies get cheaper loans. In general, CEOs with inside debt make it easier for their companies to borrow money and reduce the risk of having to refinance debt.