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Firms’ uncertainty perception and asset–debt maturity mismatch

Author

Listed:
  • Li, Xiang
  • Peng, Xu
  • Chen, Lijuan
  • Ren, Zejuan

Abstract

This study examines a sample of Chinese A-share listed companies from 2012 to 2022 and explores the relationship between a significant increase in firm uncertainty perception and asset–debt maturity mismatch. The findings show that increasing firms’ perceptions of uncertainty can exacerbate asset–debt maturity mismatch. Furthermore, the impact of firm perceptions of uncertainty on asset–debt maturity mismatch is achieved through financial constraints, financing difficulties, and the effects of investment preferences. Specifically, when enterprises perceive increasing uncertainty, they may experience insufficient cash flow, operational difficulties, and increased external risks, forcing enterprises to adopt short- and long-lending behavior to address the issues.

Suggested Citation

  • Li, Xiang & Peng, Xu & Chen, Lijuan & Ren, Zejuan, 2024. "Firms’ uncertainty perception and asset–debt maturity mismatch," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324011899
    DOI: 10.1016/j.frl.2024.106160
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    References listed on IDEAS

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    1. Olivier Coibion & Dimitris Georgarakos & Yuriy Gorodnichenko & Geoff Kenny & Michael Weber, 2024. "The Effect of Macroeconomic Uncertainty on Household Spending," American Economic Review, American Economic Association, vol. 114(3), pages 645-677, March.
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