- The study explores the causal link between VAT and corporate maturity mismatch using China’s VAT rate reform as a quasi-natural experiment
- The reform reduces corporate maturity mismatch by improving profitability and decreasing short-term financing
- The reform has no impact on firm investment
- Market competition enhances the reform effects on corporate profitability and maturity mismatch
- The reform effects are significant for non-state-owned enterprises, firms in capital-intensive industries, and firms in middle and western China.
Source: sciencedirect.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
