Governance or collusion? How institutional co-ownership and digital transformation reshape corporate maturity mismatch in investment and financing

Jun Zhai, Zi-lan Zhao, Wen-hao Guo, Bo-wen Yao and Xiao-yan Li

International Review of Financial Analysis, 2025, vol. 106, issue C

Abstract: In the digital economy, institutional co-ownership influences business investment and financing structures through knowledge exchange and resource sharing. Using a dataset of A-share listed firms from 2011 to 2023, this study explores how institutional co-ownership affects firms' short-duration liabilities and long-horizon capital allocation, focusing on three dimensions: the presence of co-ownership, the degree of interconnection, and the ownership proportion. Empirical evidence indicates that institutional co-ownership reduces both short-duration liabilities and long-horizon capital allocation, with greater interconnection and higher ownership proportions yielding stronger effects. The mechanism analysis demonstrates that digitalization reshapes how institutional co-ownership interacts with corporate maturity structures via three pathways: the development of new productivity forms, corporate image building, and easing of financing constraints. Moreover, the combined effect of institutional co-ownership and digital transformation in limiting short-term borrowing for long-term investments is more significant among firms with strong resilience, abundant resources, and high innovation capacity—especially those in the manufacturing sector, operating in regions with low policy intensity, under high environmental uncertainty, among non-state-owned small and medium-sized enterprises. Additionally, institutional co-ownership enhances firm performance by reducing maturity mismatches, an effect that is further strengthened by digital transformation and demonstrates long-term sustainability.

Keywords: Institutional co-ownership; Digital transformation; Short-duration liability; Long-horizon capital allocation; Maturity mismatch (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:106:y:2025:i:c:s105752192500599x

DOI: 10.1016/j.irfa.2025.104512

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