Using the financial data of A-share
listed companies in 2003-2018, this paper studies the maturity mismatch of
investment and financing in China based on the sensitivity of investment to
change of short-term loans. This study finds that corporate investment relies
on short-term loans rather than long-term loans, so the maturity mismatch of
investment and financing is widespread. In addition, we examine the mechanism
of the heterogeneity between state-owned enterprises and private enterprises.
We find that tightening monetary policy exacerbates the financing constraints
faced by enterprises, in the meanwhile, strengthens the role of loan supervision.
Because of the existence of credit discrimination, more credit resources fly to
state-owned enterprises during period of monetary policy tightening and loan
supervision is strengthened, so the problem of maturity mismatch of investment
and financing is weakened. However, private enterprises face severe shortage in
supply of short-term loans during the period of monetary policy tightening, so
the role of financing constraints dominates, which makes the maturity mismatch
of investment and financing intensified.
JEL classification numbers: G31 G32 G38
policy, Maturity mismatch, Financial constraint, Loan supervision