Mispricing and debt maturity structure

Mingyu Li, Xindong Zhang and Minru Qiao

Finance Research Letters, 2024, vol. 67, issue PB

Abstract: This paper examines the relationship between mispricing and debt maturity structures, using Chinese A-share listed companies from 2015 – 2022 as research samples. We find that the mispricing results in the reduction of debt maturity, driven by the overvaluation predominantly. Information asymmetry in overvalued firms intensifies this effect, but can be mitigated by reducing agency costs. Default risk and investment efficiency further moderate this relationship, being more pronounced in enterprises of private and stringent financing constraints.

Keywords: Mispricing; Debt maturity structure; Information asymmetry (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324009565

DOI: 10.1016/j.frl.2024.105926

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