Social capital and cost of debt: Evidence from Chinese CEO network centrality

Yiping Chen, Yuan George Shan, Jimin Wang, Xinxin Yang, Junru Zhang

Research output: Contribution to journalArticlepeer-review

Abstract

Using a unique dataset comprising 6313 firm-year observations for Chinese listed firms between 2008 and 2017, we investigate the impact of CEO social capital on cost of debt. Our results show that CEO social capital is negatively related to cost of debt, and the impact of CEO social capital in environments with a low degree of marketization or social trust is more pronounced than in environments with a high degree of marketization or social trust. Moreover, our results reveal that two potential mechanisms, discretionary accruals and information disclosure quality,
mediate the impact of CEO social capital on cost of debt.
Original languageEnglish
Article number101131
Number of pages25
JournalEmerging Markets Review
Volume60
Early online date10 Apr 2024
DOIs
Publication statusPublished - Jun 2024

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