EconPapers    
Economics at your fingertips  
 

Does social network improve corporate financing efficiency? Evidence from China

Hongying Yin, Xin Jin, Xiaofeng Quan and Junli Yu

Pacific-Basin Finance Journal, 2022, vol. 74, issue C

Abstract: During China's economic transformation period, corporate financing efficiency is affected not only by public governance but also by social capital. Based on the data on China's A-share listed companies in 2005–2018, this paper uses the data envelopment analysis (DEA) method to measure financing efficiency and finds that social network has positive impact on corporate financing efficiency. There is the synergistic effect between social network and public governance on corporate financing efficiency. State-owned enterprises (SOEs) have significant comparative advantages over private enterprises in financing efficiency, and the positive effect of social network on financing efficiency is more significant in private firms. It also verifies that financing constraints and risk-taking play mediation roles in the relationship between social network and corporate financing efficiency. In addition, the social networks created by different position types of interlocking executives have different impacts on corporate financing efficiency, and social network can reduce the external financing demand by improving financing efficiency.

Keywords: Social network; Corporate financing efficiency; Financing constraints; Risk-taking (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927538X2200097X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:74:y:2022:i:c:s0927538x2200097x

DOI: 10.1016/j.pacfin.2022.101802

Access Statistics for this article

Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee

More articles in Pacific-Basin Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-11-19
Handle: RePEc:eee:pacfin:v:74:y:2022:i:c:s0927538x2200097x