Could Short-selling Deregulation Affect Corporate's Maturity Mismatch?
Exploring the"maturity mismatch"puzzle in Chinese enterprises is crucial for mitigating debt risk and maintaining financial system sta-bility.However,few studies have approached this issue from the perspective of capital market regulations.This paper aims to fill this gap by examining the impact of short-selling deregulation.Using a sample of non-financial listed companies on China's A-shares from 2007 to 2019 and employing a staggered DID model,we find that deregulation on short-selling restrictions exacerbates maturity mismatch.Mechanism analysis shows that the potential risks associ-ated with relaxed short-selling reduce long-term financing for enterprises.Consequently,to seize good investment opportunities,firms are forced to use short-term funds to support long-term projects.Further,this effect is more pronounced in samples with higher ex-ante risk adjustment motives by inves-tors and higher corporate investment and financing needs.Additionally,an examination of ex post short-selling transactions yielded similar results.This study not only complements existing research,but also offers new insights for regulators to optimize margin trading policies and timely prevent micro-level debt risks.
Short-selling DeregulationMaturity MismatchEx ante Risk-adjustingLong-Term Financing
万方数据
维普
