The effect credit term structure of monetary policy on firms' "short-term debt for long-term investment" behavior: empirical evidence from China-Reference-Cited by-同舟云学术

The effect credit term structure of monetary policy on firms' "short-term debt for long-term investment" behavior: empirical evidence from China

Published:2023 Issue:3 Volume:31 Page:1498-1523
ISSN:2688-1594
Container-title:Electronic Research Archive
language:
Short-container-title:era

Author:

Zheng Liping¹²,Liao Jia³,Yu Yuan⁴,Mo Bin⁵,Liu Yun⁶

Affiliation:

1. Finance and Economics College, Jimei University, Xiamen 361021, China

2. Center for Local Financial Performance Research, Jimei University, Xiamen 361021, China

3. Business School, Huaqiao University, Quanzhou 362021, China

4. School of Management, Jinan University, Guangzhou 510632, China

5. Guangzhou Institute of International Finance, Guangzhou University, Guangzhou, 510006, China

6. College of Finance, Henan Finance University; Zhengzhou, 451450, China

Abstract

<abstract> <p>This paper examines the effects and mechanism paths of monetary policy on firms' "short-term debt for long-term investment (SDFLI)" behavior using panel data of Chinese A-share listed firms from 2007-2019. The findings indicate that loose monetary policy suppresses corporate SDFLI behavior by lengthening corporate credit maturity structure through the credit maturity structure channel. In addition, heterogeneity analysis shows that loose monetary policy significantly inhibits the SDFLI behavior of state-owned enterprises(SOEs), non-high-tech firms, and firms in regions with high bank competition levels through the credit term structure channel, and the monetary policy credit term structure channel fails for non-state-owned enterprises(non-SOEs), high-tech firms, and firms in regions with low bank competition levels. The results of the heterogeneity analysis validate the plausibility that monetary policy affects firms' SDFLI behavior through the credit term structure channel.</p> </abstract>

Publisher

American Institute of Mathematical Sciences (AIMS)

Subject

General Mathematics

Reference45 articles.

1. J. R. Morris, On corporate debt maturity strategies, J. Finance, 31 (1976), 29–37. https://doi.org/10.1111/j.1540-6261.1976.tb03193.x

2. O. Hart, J. Moore, Theory of debt based on the inalienability of human capital, Q. J. Econ., 109 (1994), 841–879. https://doi.org/10.2307/2118350

3. S. C. Myers, Determinants of corporate borrowing, J. Financ. Econ., 5 (1977), 147–175. https://doi.org/10.1016/0304-405X(77)90015-0

4. M. Campello, E. Giambona, J. R. Graham, Liquidity management and corporate investment during a financial crisis, Rev. Financ. Stud., (2011), 1944–1979. https://doi.org/10.1093/rfs/hhq131

5. V. V. Acharya, Y. Amihud, L. Litov, Creditor rights and corporate risk-taking, J. Financ. Econ., 102 (2011), 150–166. https://doi.org/10.1016/j.jfineco.2011.04.001

Cited by 2 articles. 订阅此论文施引文献订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献

1. Does digital transformation exacerbate or mitigate maturity mismatch in hospitality and tourism firms?;International Journal of Hospitality Management;2024-10

2. The challenges of maturity mismatch in investment and financing for sustainable development of carbon-intensive enterprises;Environmental Science and Pollution Research;2023-08-23