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Mispricing and debt maturity structure

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  • LI, Mingyu
  • ZHANG, Xindong
  • QIAO, Minru

Abstract

This paper examines the relationship between mispricing and debt maturity structures, using Chinese A-share listed companies from 2015 – 2022 as research samples. We find that the mispricing results in the reduction of debt maturity, driven by the overvaluation predominantly. Information asymmetry in overvalued firms intensifies this effect, but can be mitigated by reducing agency costs. Default risk and investment efficiency further moderate this relationship, being more pronounced in enterprises of private and stringent financing constraints.

Suggested Citation

  • LI, Mingyu & ZHANG, Xindong & QIAO, Minru, 2024. "Mispricing and debt maturity structure," Finance Research Letters, Elsevier, vol. 67(PB).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324009565
    DOI: 10.1016/j.frl.2024.105926
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    References listed on IDEAS

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