Tax information sharing, financing frictions, and firms’ investment–financing maturity mismatch

Kebin Wang and Jing Zhang

Economics Letters, 2025, vol. 252, issue C

Abstract: This study examined the impact of China’s tax ASDI reform, which permits tax bureaus to share firms’ tax information with banks. Results confirm that the reform reduced information asymmetry between banks and firms, facilitating firms’ access to long-term credit and addressing the maturity mismatch between corporate financing and investment. This effect is more pronounced for non-state-owned enterprises, service sectors, small firms, and low-leverage firms.

Keywords: Dynamic difference-in-differences model; Tax information sharing; Financing friction; Investment–financing maturity mismatch (search for similar items in EconPapers)
JEL-codes: G14 G32 G38 H20 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:252:y:2025:i:c:s0165176525002101

DOI: 10.1016/j.econlet.2025.112373

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