Does managerial bank relationship network matter corporate resilience? Evidence from the COVID-19 crisis

Ruiyang Niu, Lin Chen, Liang Jin, Guanghua Xie and Longfeng Zhao

International Review of Economics & Finance, 2024, vol. 89, issue PA, 855-877

Abstract: This study examines the effect of managerial bank relationship networks on corporate resilience to the COVID-19 crisis. We find that managerial bank relationship network helps firms experience fewer losses and recover more quickly during the COVID-19 crisis. We document that managerial bank relationship networks help firms build corporate resilience by facilitating financing accessibility. Further analysis shows that its positive effect is more significant if managers have state-owned bank work experience or have a higher bank hierarchy. Furtherly, the positive effect of the managerial bank relationship network is primarily found in firms with less government support and low marketization regions. These findings provide new insights on enhancing corporate resilience and prompting the bailout policies implementation by stimulating the positive role of managerial bank relationship network.

Keywords: Managerial bank relationship network; Corporate resilience; COVID-19 crisis (search for similar items in EconPapers)
JEL-codes: G30 G34 J16 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:89:y:2024:i:pa:p:855-877

DOI: 10.1016/j.iref.2023.07.104

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