Common institutional ownership and corporate maturity mismatch

Yunling Song, Chengying Xu and Hao Wu

Finance Research Letters, 2024, vol. 69, issue PA

Abstract: Using data from Chinese listed firms from 2003 to 2022, we find that common institutional ownership significantly increases maturity mismatches of investment and financing by reducing the aggressiveness of corporate strategy. This relationship remains qualitatively the same after a battery of robustness and diagnostic tests and becomes stronger in observations with lower industry competition or economic policy uncertainty. Our study has implications for promoting institutional investors in China and forestalling major financial risks.

Keywords: Common institutional ownership; Maturity mismatch of investment and financing; Governance externalities; Coordination effects (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:69:y:2024:i:pa:s1544612324011851

DOI: 10.1016/j.frl.2024.106156

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