Institutional investor networks centrality and firms’ debt maturity mismatch

Tingting Liu, Ziang Chen, Junrui Zhang and Brian Lucey

Finance Research Letters, 2025, vol. 71, issue C

Abstract: Institutional investors with a more central position in the network occupy a significant number of structural holes, thereby gaining a relative advantage in network influence, prominence, and prestige. This paper focuses on China, a typical relational society, to investigate the effect of institutional investor networks centrality on firms’ maturity mismatch. Drawing upon data from A-share Chinese listed firms between 2007 and 2020, we find that the higher centrality within institutional investor networks is associated with lower firms’ debt maturity mismatch. This effect is further enhanced by frequent site visits. In addition, heterogeneity analyses reveal that the documented relationship is more pronounced in non-SOEs and firms with higher levels of financing constraints. The results hold after the robustness tests and endogeneity tests.

Keywords: Institutional investor network; Debt maturity structure; Bank loans; Site visit (search for similar items in EconPapers)
JEL-codes: D85 G21 G39 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:71:y:2025:i:c:s1544612324015113

DOI: 10.1016/j.frl.2024.106482

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