IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v70y2024ipas027553192400117x.html
   My bibliography  Save this article

Potential risks in the easy market access: A perspective from corporate asset-debt maturity mismatch

Author

Listed:
  • Hu, Mingsheng
  • Li, Bowen

Abstract

The Negative List System for Market Access (NLSMA), which opens all sectors except a proscribed few to market entities, is an innovative product market liberalization reform in China. This study examines the impact of the NLSMA on corporate asset-debt maturity mismatch. The baseline regression results show that the NLSMA significantly aggravates corporate asset-debt maturity mismatch, and this effect is more pronounced in firms with non-state ownership, more severe financial constraints, or higher entrance barriers. We further find that the NLSMA affects corporate asset-debt maturity mismatch from both credit demand- and supply-side factors. Furthermore, the intensified maturity mismatch after deregulation can decrease firms’ profitability and increase the likelihood that firms default. Finally, to alleviate the maturity mismatch, firms may actively obtain resources from powerful stakeholders and improve information transparency.

Suggested Citation

  • Hu, Mingsheng & Li, Bowen, 2024. "Potential risks in the easy market access: A perspective from corporate asset-debt maturity mismatch," Research in International Business and Finance, Elsevier, vol. 70(PA).
    • Handle: RePEc:eee:riibaf:v:70:y:2024:i:pa:s027553192400117x
    DOI: 10.1016/j.ribaf.2024.102324
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S027553192400117X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2024.102324?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:70:y:2024:i:pa:s027553192400117x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.