CEO social capital, financing constraints and corporate financialisation: Evidence from Chinese listed companies

Yueyan Chen, Baohua Shen, Yawei Cao and Shuyu Wang

Finance Research Letters, 2024, vol. 60, issue C

Abstract: This study employs panel data from Chinese listed companies (2008–2021) to examine the impact of CEO social capital on corporate financialization. Utilizing panel tobit and instrumental variable models, we find that higher CEO social capital intensifies firm financialization. This relationship remains robust after accounting for endogeneity and passing multiple robustness checks. Mechanistically, we demonstrate that CEO social capital eases financing constraints, thereby fueling financialization. These insights deepen our understanding of the drivers of corporate financialization and have implications for governance and policy.

Keywords: CEO social capital; Corporate financialisation; Financing constraints; Mediation effect; China (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323011534

DOI: 10.1016/j.frl.2023.104781

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