Market liquidity, credit maturity structure and asset mismatch in manufacturing firms

Lianjun Yao and Yuting Qiu

Finance Research Letters, 2024, vol. 63, issue C

Abstract: Based on the period from 2011 to 2021 and considering macroeconomic data, this paper analyzes the relationship between market liquidity and asset mismatch in manufacturing firms. Specifically, this paper reveals that market liquidity can mitigate manufacturing firms` asset mismatch by optimizing credit maturity structure. Further, heterogeneous effects exist in the impact of the policy above, both at a regional and individual level. Market liquidity is crucial in mitigating asset mismatch for companies operating in locations with intense competition among banks and high leverage levels. However, its impact has been minimal in companies with limited bank rivalry and modest borrowing levels.

Keywords: Market liquidity; Credit maturity structure; Asset mismatch; Manufacturing firms (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612324004306
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324004306

DOI: 10.1016/j.frl.2024.105400

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().