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

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  • Chen, Yueyan
  • Shen, Baohua
  • Cao, Yawei
  • Wang, Shuyu

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.

Suggested Citation

  • Chen, Yueyan & Shen, Baohua & Cao, Yawei & Wang, Shuyu, 2024. "CEO social capital, financing constraints and corporate financialisation: Evidence from Chinese listed companies," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323011534
    DOI: 10.1016/j.frl.2023.104781
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    References listed on IDEAS

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    1. Li, Yang & Lin, Xiaorong & Lei, Xingfan & Ge, Ji & Guo, Jingyi & Xia, Wenxin, 2024. "Corporate financialization and litigation risk," Finance Research Letters, Elsevier, vol. 67(PA).

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