Corporate social network, ownership structure, and corporate financing constraints: Evidence from China

Tianjiao Zhao, Ming Xiao and Bingshi Zhang

International Review of Economics & Finance, 2023, vol. 88, issue C, 1547-1564

Abstract: Based on the stakeholder theory, we constructed a corporate social network for all publicly listed Chinese A-share enterprises on the Shanghai and Shenzhen Stock Exchanges for 2010–2017. The empirical results show that there is a negative relationship between the focal positions of the corporate social network and financing constraints. Specifically, if an enterprise is located in a more central position or occupies more structural hole positions in the network, it has fewer financing constraints. Ownership structure plays a moderating role in this relationship. The results remain robust to various robustness checks and support the information access hypothesis of social networks.

Keywords: Corporate social network; Network centrality; Structural holes; Financing constraint; Ownership structure (search for similar items in EconPapers)
JEL-codes: G32 M14 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:88:y:2023:i:c:p:1547-1564

DOI: 10.1016/j.iref.2023.07.075

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