The Impact of Institutional Investor Holdings on Short-Term Debt Financing for Long-Term Use in Listed Companies
DOI:
https://doi.org/10.62051/9c67w221Keywords:
Institutional investors, short-term debt for long-term use, financing constraints.Abstract
Reasonable investment and financing arrangements are a crucial prerequisite for the high-quality development of listed companies. However, Chinese listed companies exhibit the phenomenon of short-term debt financing for long-term use. Institutional investors can mitigate this practice by participating in corporate governance. This study examines the impact of institutional investor holdings on short-term debt financing for long-term use among Chinese A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2007 to 2024. Results indicate that institutional investor holdings effectively reduce this practice, with findings remaining robust after stability tests. Mediation analysis reveals that institutional holdings mitigate short-term debt for long-term use by easing the financing constraints faced by listed companies. Heterogeneity analysis further indicates that stable institutional investors and independent institutional investors exert a stronger moderating effect on this practice.
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