Public data accessibility and corporate maturity mismatch: Evidence from China

Dongdong Li, Mingxia Gui, Rui Ma and Yiwen Feng

Pacific-Basin Finance Journal, 2024, vol. 86, issue C

Abstract: As the importance of public data to the real economy continues to be recognized, this study explores public data accessibility as a determinant of corporate maturity mismatch between investment and financing. Exploiting the staggered establishment of public data open platforms (PDOPs) across different cities in China, we observe a significant reduction in local firms' maturity mismatch following the establishment of PDOPs. The results remain robust even after conducting a battery of robustness tests, including placebo tests, matching analysis, as well as controlling for the influence of other major concurrent reforms and utilizing alternative measures for corporate maturity mismatch. Mechanism analysis indicates that the establishment of PDOPs contributes to an increase in the scale of long-term loans and an extension of the debt maturity structure. This suggests that enhanced public data accessibility effectively strengthens banks' information discernment capabilities. Cross-sectional analysis indicates that the effects are more pronounced in samples of private enterprises, companies with high levels of earnings management, fewer analysts covering, lower collateral values, and a higher proportion of local subsidiaries. Additionally, the economic consequence analysis reveals that the establishment of PDOPs ultimately helps to reduce corporate default risk. Finally, this study finds no evidence of potential spatial spillover effects from the establishment of PDOPs. This study offers a new perspective on understanding changes in corporate maturity mismatch, providing significant policy implications for preventing and mitigating financial risks.

Keywords: Public data accessibility; Maturity mismatch; Information asymmetry; Debt maturity structure (search for similar items in EconPapers)
JEL-codes: D80 G21 G38 H41 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:86:y:2024:i:c:s0927538x24002063

DOI: 10.1016/j.pacfin.2024.102455

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