Proceedings of the 5th International Conference on Internet Finance and Digital Economy (ICIFDE 2025)

<Previous Article In Volume
Next Article In Volume>

The Influence Mechanism of Board Informal Hierarchy on Corporate Short-Term Financing for Long-Term Investment: A Model Analysis

Authors
Yuanhao Fan1, *, Junming Shui1, Yang Bai1, Jiaqi Lu1
1Harbin Institute of Information Technology, Harbin, China
*Corresponding author. Email: 1259677957@qq.com
Corresponding Author
Yuanhao Fan
Available Online 6 November 2025.
DOI
10.2991/978-94-6463-886-8_9How to use a DOI?
Keywords
Long-term Capital Financing Gap Model; Board informal hierarchy; Short-term Financing for Long-term Investment (SFLI); Investment-financing structure; Regression Analysis
Abstract

This study empirically examines the impact of informal board hierarchy on corporate short-term financing for long-term investment (SFLI) using a sample of A-share listed companies in Shanghai and Shenzhen stock exchanges from 2011 to 2023. We employ the long-term capital financing gap model to measure SFLI behavior. The findings reveal that informal board hierarchy significantly reduces SFLI. Mechanism analysis indicates that informal board hierarchy mitigates SFLI by alleviating information asymmetry, addressing agency problems, and curbing managerial overconfidence. Further analysis shows that the restraining effect of informal board hierarchy on SFLI is more pronounced in state-owned enterprises (SOEs) and firms with CEO duality. The conclusions provide valuable insights for strengthening board governance and optimizing corporate investment-financing decisions.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the 5th International Conference on Internet Finance and Digital Economy (ICIFDE 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
6 November 2025
ISBN
978-94-6463-886-8
ISSN
2352-5428
DOI
10.2991/978-94-6463-886-8_9How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yuanhao Fan
AU  - Junming Shui
AU  - Yang Bai
AU  - Jiaqi Lu
PY  - 2025
DA  - 2025/11/06
TI  - The Influence Mechanism of Board Informal Hierarchy on Corporate Short-Term Financing for Long-Term Investment: A Model Analysis
BT  - Proceedings of the 5th International Conference on Internet Finance and Digital Economy (ICIFDE 2025)
PB  - Atlantis Press
SP  - 75
EP  - 84
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-886-8_9
DO  - 10.2991/978-94-6463-886-8_9
ID  - Fan2025
ER  -