Debt mismatch, equity mismatch and total factor productivity of listed enterprises in China

In the analysis of financial mismatch, the focus is typically on the efficiency of debt allocation, while the efficiency of equity allocation is often neglected. Based on the financial data of Shanghai and Shenzhen A-share listed companies from 2012 to 2022, this study comprehensively reflects the status of financial mismatch by utilizing the allocation efficiency of both debt and equity. An empirical analysis is conducted through the construction of a two-way fixed effects model and a mediation effect model. The results show that financial mismatch will significantly inhibit the total factor productivity of enterprises, and this conclusion is still valid after robustness test and endogenous test. Heterogeneity analysis shows that the inhibitory effect of debt mismatch on total factor productivity is more obvious in state-owned enterprises, large-scale enterprises, and enterprises in the eastern region, while the inhibitory effect of equity mismatch is stronger in non-state-owned enterprises and enterprises in the central region, with no clear scale heterogeneity. The mechanism test shows that financial mismatch will inhibit the improvement of total factor productivity by inhibiting the R&D innovation ability of enterprises and exacerbating financing difficulties.