Unlocking the power of roots: Local CEOs and corporate maturity mismatch

Chun Tang, Xiaobing Lai and Xiaoxing Liu

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

Abstract: This paper investigates the impact of local CEOs on corporate maturity mismatch. We find that local CEOs can significantly mitigate the issue of corporate maturity mismatch, mostly by resolving agency conflicts, boosting information disclosure, and alleviating financial constraints. Furthermore, the positive impact of local CEOs is particularly pronounced in non-state-owned enterprises, growth stage firms, and innovative industries. Further analysis suggests that increasing equity financing capacity and combining industry and finance significantly improves the effect of local CEOs on maturity mismatch, whereas debt pressure from local governments crowds out bank financing space, significantly suppressing the role of local CEOs.

Keywords: Local CEOs; Corporate maturity mismatch; Financing constraints (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:s0927538x2400194x

DOI: 10.1016/j.pacfin.2024.102443

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