IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v85y2025ipbs1544612325012322.html

Social credit environment, financing levels, and criminal crime rates

Author

Listed:
  • Huang, Xuwei

Abstract

Utilizing statistical data from 31 provincial-level administrative regions in China from 2013 to 2023, this study empirically analyzes the mechanisms by which the social credit environment and financing levels influence criminal crime rates. The research finds that both the social credit environment and financing levels significantly contribute to reducing regional crime rates; financing levels serve as a mediating bridge between the social credit environment and criminal crime rates. Notably, the extent of the impact of the social credit environment on criminal crime rates varies significantly between regions with large and small urban-rural income disparities. These findings provide new policy perspectives for optimizing social governance and the allocation of financial resources.

Suggested Citation

  • Huang, Xuwei, 2025. "Social credit environment, financing levels, and criminal crime rates," Finance Research Letters, Elsevier, vol. 85(PB).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pb:s1544612325012322
    DOI: 10.1016/j.frl.2025.107974
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325012322
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.107974?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Kingsley K. Arthur & Simplice A. Asongu & Peter Darko & Marvin O. Ansah & Sampson Adom & Omega Hlortu, 2025. "Financial crimes in Africa and economic growth: Implications for achieving sustainable development goals (SDGs)," Journal of Economic Surveys, Wiley Blackwell, vol. 39(3), pages 1212-1251, July.
    2. Li, Lin & Sun, Chenghao, 2024. "How does digital finance reduce urban crime rate?," Finance Research Letters, Elsevier, vol. 63(C).
    3. Wu, Haitao & Xia, Yufeng & Yang, Xiaodong & Hao, Yu & Ren, Siyu, 2021. "Does environmental pollution promote China's crime rate? A new perspective through government official corruption," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 292-307.
    4. Ji, Fei & Liang, Weiming & Chen, Xi & Kong, Dongmin, 2025. "Social credit improvement and enterprise investment," Finance Research Letters, Elsevier, vol. 71(C).
    5. Tatyana Guzman & Benjamin Y. Clark, 2022. "Crime and credit: The empirical study of how crime affects credit ratings of large U.S. cities," Social Science Quarterly, Southwestern Social Science Association, vol. 103(5), pages 1234-1247, September.
    6. Matteo Tiratelli & Ben Bradford & Julia Yesberg, 2023. "The Political Economy of Crime: Did Universal Credit Increase Crime Rates?," The British Journal of Criminology, Centre for Crime and Justice Studies, vol. 63(3), pages 570-587.
    7. Fang, Hongxing & Chen, Linghong & Xiong, Jiacai & Zhu, Yushu, 2024. "Social Trust and Entrepreneurship: Insights from China's Social Credit System," Finance Research Letters, Elsevier, vol. 62(PA).
    8. Mo Chen & Jens Grossklags, 2022. "Social Control in the Digital Transformation of Society: A Case Study of the Chinese Social Credit System," Social Sciences, MDPI, vol. 11(6), pages 1-23, May.
    9. Huang, Wei & Goodell, John W. & Xia, Qing & Yuan, Shuai, 2024. "Trade credit provision and innovation: A strategic trade-off," International Review of Financial Analysis, Elsevier, vol. 94(C).
    10. Lin, Xifen & Wu, Wanqiang & Lan, Huanqi & Ma, Yong, 2024. "The impact of anti-organized crime on business environment: Evidence from China's anti-Mafia campaign," International Review of Economics & Finance, Elsevier, vol. 95(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fang, Guangliang & Wang, Zizhen & Zheng, Jianwen & Pan, Xia, 2026. "Criminal shadows on digital finance: Organized crime and digital finance inclusion in China," Finance Research Letters, Elsevier, vol. 87(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hamdi Becha & Afifa Ferhi & Maha Kalai & Kamel Helali, 2026. "Non-linearity Inflation-Growth relationship in Tunisia: application with threshold regression model," SN Business & Economics, Springer, vol. 6(3), pages 1-40, March.
    2. Yang, Yuelin, 2025. "The development of digital finance and the crime rate of theft," Finance Research Letters, Elsevier, vol. 71(C).
    3. Huang, Yuhong & Chen, Xiaozhou & Chen, Xinmin, 2026. "Social credit environment and corporate trade credit financing: Evidence from China," Journal of Business Research, Elsevier, vol. 205(C).
    4. Ying Zhang & Yuting Guo & Aiman Nurdazym, 2023. "How do female CEOs affect corporate environmental policies?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 459-472, January.
    5. Hao, Yu & Guo, Yunxia & Li, Suixin & Luo, Shiyue & Jiang, Xueting & Shen, Zhiyang & Wu, Haitao, 2022. "Towards achieving the sustainable development goal of industry: How does industrial agglomeration affect air pollution?," Innovation and Green Development, Elsevier, vol. 1(1).
    6. Mo Chen & Kristina Bogner & Joana Becheva & Jens Grossklags, 2023. "On the transparency of the credit reporting system in China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    7. Hui Hou & Siwei Yang & Minghao Zhang, 2023. "The impact of anti‐corruption on environmental governance efficiency in China: A study based on spatial effect," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(8), pages 4452-4465, December.
    8. Sefa Awaworyi Churchill & Russell Smyth & Trong‐Anh Trinh, 2023. "Crime, Weather and Climate Change in Australia," The Economic Record, The Economic Society of Australia, vol. 99(324), pages 84-107, March.
    9. Zaman, Rashid & Atawnah, Nader & Banigidadmath, Deepa & Nadeem, Muhammad & Liu, Jia, 2025. "Do companies’ green credentials enhance trade credit provisions? Global evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 103(C).
    10. Li, Zengfu & Yu, Zhijun & Yang, Zhihao & Ding, Zijia, 2025. "Specialization in Bank Lending and short-term debt for long-term use: Evidence from China," Finance Research Letters, Elsevier, vol. 75(C).
    11. Ding, Zijia & Liu, Qian & Che, Dexin, 2025. "Specialization in Bank lending and firm deleveraging: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 103(C).
    12. Yang, Tianjian & Zuo, Jingxuan & Han, Minghui & Wei, Dongming, 2025. "The impact of credit reporting system development on banking sector openness: Evidence from 101 economies," Pacific-Basin Finance Journal, Elsevier, vol. 94(C).
    13. Shahriar, Abu Zafar M. & Alam, Quamrul, 2024. "Violence against women, innate preferences and financial inclusion," Pacific-Basin Finance Journal, Elsevier, vol. 87(C).
    14. Vincent Tawiah & Abdulrasheed Zakari & Rafael Alvarado, 2024. "Effect of corruption on green growth," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(4), pages 10429-10459, April.
    15. Yang, Jie & Yu, Juan & Bao, Mengqi, 2025. "Intelligent manufacturing and trade credit," International Review of Financial Analysis, Elsevier, vol. 97(C).
    16. Wang, Xuecheng & Zhang, Fafu, 2025. "Impacts of China's social credit reform on firm investment efficiency: Evidence from a quasi-natural experiment in China," Pacific-Basin Finance Journal, Elsevier, vol. 93(C).
    17. Omri, Henda & Jarraya, Bilel & Kahia, Montassar, 2025. "Green finance for achieving environmental sustainability in G7 countries: Effects and transmission channels," Research in International Business and Finance, Elsevier, vol. 74(C).
    18. Liu, Dongming & Tu, Yongqian & Chen, Zhangzhang & Zheng, Yinglong, 2025. "Analysis of the synergistic effect of digital financial inclusion and social security on crime governance based on regional differences," International Review of Economics & Finance, Elsevier, vol. 98(C).
    19. Fang, Guangliang & Wang, Zizhen & Zheng, Jianwen & Pan, Xia, 2026. "Criminal shadows on digital finance: Organized crime and digital finance inclusion in China," Finance Research Letters, Elsevier, vol. 87(C).
    20. Bortolotti, Luca & Biggeri, Mario, 2022. "Is the slowdown of China's economic growth affecting multidimensional well-being dynamics?," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 478-489.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:85:y:2025:i:pb:s1544612325012322. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.