The Exit Threats of Non-Controlling Large Shareholders and Maturity Mismatch: Evidence from China

Maturity mismatch between investment and financing is a major potential risk faced by firms in recent years, which also concerns the controllability of macroeconomic movement risk and the quality and efficiency of economic development. This study explores the mitigation measures of maturity mismatch...

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Main Authors: Jia Liao, Xinxue Gao, Yun Zhan, Yu Yuan
Format: Article
Language:English
Published: SAGE Publishing 2025-08-01
Series:SAGE Open
Online Access:https://doi.org/10.1177/21582440251359368
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author Jia Liao
Xinxue Gao
Yun Zhan
Yu Yuan
author_facet Jia Liao
Xinxue Gao
Yun Zhan
Yu Yuan
author_sort Jia Liao
collection DOAJ
description Maturity mismatch between investment and financing is a major potential risk faced by firms in recent years, which also concerns the controllability of macroeconomic movement risk and the quality and efficiency of economic development. This study explores the mitigation measures of maturity mismatch from the important governance mechanism of Non-controlling Large Shareholders (NCLSs) exit threats. Taking Chinese listed companies on the A-share market over the period 2010 to 2020 as a sample, we find that the exit threats of NCLSs significantly alleviate the degree of maturity mismatch. Furthermore, we investigate the moderating role of the attention of market parties (analyst, media, and investor) on the above relationship. We find that the higher the attention of market parties, the more significant the inhibitory role of NCLSs exit threats on the maturity mismatch. Based on the above research results, we propose countermeasures and suggestions for firms to construct a reasonable ownership structure for NCLSs to engage in corporate governance flexibly and effectively.
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spelling doaj-art-1e4d4f335f7a46ddba59198f9c92bf482025-08-20T03:03:51ZengSAGE PublishingSAGE Open2158-24402025-08-011510.1177/21582440251359368The Exit Threats of Non-Controlling Large Shareholders and Maturity Mismatch: Evidence from ChinaJia Liao0Xinxue Gao1Yun Zhan2Yu Yuan3Business School, Huaqiao University, Quanzhou, ChinaBusiness School, Huaqiao University, Quanzhou, ChinaCollege of Economics and Management FAFU, Fujian Agriculture and Forestry University, Cangshan District, Fuzhou, ChinaBusiness School, Huaqiao University, Quanzhou, ChinaMaturity mismatch between investment and financing is a major potential risk faced by firms in recent years, which also concerns the controllability of macroeconomic movement risk and the quality and efficiency of economic development. This study explores the mitigation measures of maturity mismatch from the important governance mechanism of Non-controlling Large Shareholders (NCLSs) exit threats. Taking Chinese listed companies on the A-share market over the period 2010 to 2020 as a sample, we find that the exit threats of NCLSs significantly alleviate the degree of maturity mismatch. Furthermore, we investigate the moderating role of the attention of market parties (analyst, media, and investor) on the above relationship. We find that the higher the attention of market parties, the more significant the inhibitory role of NCLSs exit threats on the maturity mismatch. Based on the above research results, we propose countermeasures and suggestions for firms to construct a reasonable ownership structure for NCLSs to engage in corporate governance flexibly and effectively.https://doi.org/10.1177/21582440251359368
spellingShingle Jia Liao
Xinxue Gao
Yun Zhan
Yu Yuan
The Exit Threats of Non-Controlling Large Shareholders and Maturity Mismatch: Evidence from China
SAGE Open
title The Exit Threats of Non-Controlling Large Shareholders and Maturity Mismatch: Evidence from China
title_full The Exit Threats of Non-Controlling Large Shareholders and Maturity Mismatch: Evidence from China
title_fullStr The Exit Threats of Non-Controlling Large Shareholders and Maturity Mismatch: Evidence from China
title_full_unstemmed The Exit Threats of Non-Controlling Large Shareholders and Maturity Mismatch: Evidence from China
title_short The Exit Threats of Non-Controlling Large Shareholders and Maturity Mismatch: Evidence from China
title_sort exit threats of non controlling large shareholders and maturity mismatch evidence from china
url https://doi.org/10.1177/21582440251359368
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