The Impact of Debt Maturity Mismatch on corporate

Abstract

Chinese firms currently face severe financing constraints and debt maturity mismatch problems. Existing literature primarily focuses on the cause and influencing factors of debt maturity mismatch, while the transmission mechanisms and consequences remain lacking a systematic synthesis. Drawing on domestic and international literature, the paper adopts a literature review approach to synthesize the transmission mechanisms and consequences of debt maturity mismatch on firms. These influencing mechanisms proceed through four channels: refinancing pressure, financing costs, cash flow volatility and signaling. In terms of consequences, debt maturity mismatch can lead to a decline in firm operating performance, distortion of investment behavior and impairment of firm value. Based on the above analysis, this paper offers the following implications. Banks could consider increasing the supply of long-term debt for SMEs to avoid refinancing risks when they face cash flow constraints. At the policy level, policymakers could promote the development of bank competition and digital inclusive finance to broaden financing channels and alleviate maturity mismatch problems.