The Threat of Exit by the Non-controlling Majority Shareholders and Corporate Short-term Loan for Long-term Investment
Short-term loan for long-term investment in firms is a common phenomenon of investment and financing maturity mismatch at the micro level.Reducing the level of short-term loan for long-term investment is an essential content and part of the continuing work to prevent and mitigate major risks in an all-round and practical manner.This paper empirically examines the impact of the threat of exit by non-controlling majority shareholders on firms'short-term loan for long-term investment,using A-share non-financial listed companies in Shanghai and Shenzhen from 2008 to 2020.The study found that(1)the threat of exit by non-controlling majority shareholders can effectively reduce the level of short-term loan for long-term investment by firms.(2)The threat of exit by non-controlling majority shareholders can create a monitoring check on managers,with the threat of exit being a stronger disincentive for firms to take short-term loan for long-term investment in the presence of risk preference managers and overconfident managers.(3)Dis-tinguishing the nature of non-controlling majority shareholders,we found that the threat of exit by state-owned non-controlling majority shareholders sig-nificantly reduced the level of short-term loan for long-term investment,and this effect was significant in both state-owned and non-state-owned enter-prises,while the inhibiting effect of the threat of exit by non-state-owned non-controlling majority shareholders on short-term loan for long-term invest-ment was only significant in state-owned enterprises.(4)The results of heterogeneity analysis show that the threat of exit by non-controlling majority shareholders has a more significant inhibitory effect on firms'short-term loan for long-term investment with no long-term funding gap,irrational short-term borrowing,and over-invested firms.Based on the above research findings,this article proposes countermeasures and suggestions for listed companies to further improve shareholder governance mechanisms and enhance risk prevention and control capabilities.
Non-controlling Majority ShareholdersThreat of ExitCorporate GovernanceShort-term Loan for Long-term Investment
万方数据
维普
