Does interest rate liberalization affect corporate debt structure?
利用中国利率上限和下限取消两个准自然实验，研究发现利率市场化后高风险企业增加短期债务、减少长期和总债务，而低风险企业则相反，这影响了企业的增长前景和盈利能力。
Abstract This study examines how interest rate deregulation affects debt structure of Chinese listed firms through two quasi‐natural experiments: the cap removal (2002–2006) and floor removal (2011–2015). Following deregulation, risky firms increase short‐term debt while decreasing long‐term and total debt, whereas non‐risky firms exhibit opposite patterns. These changes are influenced by collateral requirements, industry cluster proximity, bank relationships, and ownership structure. The divergent outcomes reflect increased borrowing costs for risky firms and reduced costs for non‐risky firms due to enhanced banking competition. Post‐liberalization, risky firms face reduced risk exposure but increased asset‐liability mismatches, while experiencing declining growth prospects. Conversely, non‐risky firms demonstrate improved growth prospects and higher profitability with increased long‐term debt. These findings illuminate how banking sector liberalization shapes corporate financial strategies.