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

作者：Yiping Chen, Yuan George Shan, Jimin Wang, Xinxin Yang, Junru Zhang · 发表于：Emerging Markets Review · 年份：2024 · DOI：10.1016/j.ememar.2024.101131 · 被引用次数：16 · 研究领域：Corporate Finance and Governance、Family Business Performance and Succession、Private Equity and Venture Capital

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.