 Cross-shareholding network and corporate bond financing cost in ChinaHongling Guo, Yue Sun and Xuemei Qiu The North American Journal of Economics and Finance, 2021, vol. 57, issue C Abstract: This study examines the effect of cross-shareholding network centrality on the cost of corporate bond financing. Based on a sample of Chinese A-share listed firms that issued general corporate bonds from 2007 to 2018, we adopt a social network analysis method and use three indicators (Degree, Betweenness, and Eigenvector) and the principal factor (Composite) extracted from them to measure the firms’ centrality in the cross-shareholding network. We find that bondholders’ demand lowers bond yield spreads for firms with higher cross-shareholding network centrality. In further analyses, we explore the impact mechanisms using mediator models and find that such centrality promotes resource accessing, information disclosure, and corporate governance, thus decreasing corporate bond financing cost. In addition, we incorporate the moderate effect of geographical location and find that the relationship between cross-shareholding network centrality and corporate bond financing cost is more significant in firms located in remote places. Keywords: Cross-shareholding network centrality; Corporate bond financing cost; Bond yield spreads (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:57:y:2021:i:c:s1062940821000565 DOI: 10.1016/j.najef.2021.101423 Access Statistics for this article The North American Journal of Economics and Finance is currently edited by Hamid Beladi More articles in The North American Journal of Economics and Finance from Elsevier |
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