Can Sharing Auditors of Banks and Enterprises Curb the Use of Short-term Debt for Long-term Investment?
Banks are the backbone of China's financial system.How to improve the allocation efficiency of credit funds has attracted wide attention from both theoretical and practical communities.Based on the debt maturity structure theory,this study tests the impact of companies and lending banks employing the same accounting firm on the use of short-term debt for long-term investments.The results indicate that sharing same auditor between banks and enterprises alleviates corporate capital maturity mismatch,and reduces the use of short-term debt for long-term investments.Further research shows that information asymmetry positively moderates the relationship between auditor sharing and maturity mismatch,and that auditor sharing mitigates the use of short-term debt for long-term investments by improving accounting information quality.The results of the heterogeneity analysis suggest that the negative effect of auditor shring on maturity mismatch is more pronounced when companies are more reliant on loans and in companies with less collateral.Economic consequences studies indicate that auditor sharing can reduce bankruptcy risk.This research sheds light on the role of auditor sharing in optimizing corporate debt maturity structure and improving capital allocation efficiency.
sharing auditors of banks and enterprisesauditor networkdebt maturity structureuse of short-term loan for long-term investment
NETL
NSTL
万方数据
