Banking Competition And The Maturity Mismatch Between Financing And Investment On The Corporate Level

How to relieve the maturity mismatch of investment and financing on corporate level is of utmost importance to reduce the operational risk of the real economy and the systematic risk of the finance.Theoretically,the competition of the banking industry can relieve the credit financing constraint,thus reducing the maturity mismatch of investment and financing on corporate level.Using hand-collected data of financial licence of commercial banks,this paper constructs the measure of banking competition on the provincial level in order to analyze and empirically test the potential influence of banking competition on the the maturity mismatch of investment and financing on corporate level,its mechanism and economic consequences.This paper finds several important conclusions.Firstly,the rise of banking competition is conducive to reducing the maturity mismatch of investment and financing.Secondly,the mechanism of the potential influence of banking competition on the the maturity mismatch of investment and financing on corporate level is to relieve financial constraints.Thirdly,the competition of banking competition can reduce the negative influence of the the maturity mismatch of investment and financing on corporate performance.This paper further considers the heterogeneity of enterprise and finds that(4)the mitigation effect of banking competition on the maturity mismatch of investment and financing on the corporate level is only significant in small-scale enterprises.(5)Compared with enterprises with low growth rate,the mitigation effect of banking competition on the maturity mismatch of investment and financing on the corporate level is more significant in enterprises with higher growth.These research conclusions indicate that promoting the market reform of financial institutions is beneficial for improving the efficiency of asset allocation in the credit industry and the maturity mismatch of investment and financing on corporate level,thus lowering the negative influence on the company,its supply chains and the financial system.