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

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  • Zhao, Tianjiao
  • Xiao, Ming
  • Zhang, Bingshi

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.

Suggested Citation

  • Zhao, Tianjiao & Xiao, Ming & Zhang, Bingshi, 2023. "Corporate social network, ownership structure, and corporate financing constraints: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 1547-1564.
    • Handle: RePEc:eee:reveco:v:88:y:2023:i:c:p:1547-1564
    DOI: 10.1016/j.iref.2023.07.075
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    References listed on IDEAS

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    7. Peng, Zixuan & Sha, Haowei & Lan, Hongxing & Chen, Xudong, 2019. "Cross-shareholding and financing constraints of private firms: Based on the perspective of social network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 520(C), pages 381-389.
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    Cited by:

    1. Sun, Haibo & Bai, Tonghuan & Liu, Zhonglu, 2024. "Perceived policy uncertainty and enterprise greenwashing risk," Finance Research Letters, Elsevier, vol. 69(PA).
    2. Zhang, Xiekui & Gong, Dayong & Huang, Yihan & Li, Yiting, 2024. "The Government's fiscal and taxation policy effect on enterprise productivity: Policy choice and optimal allocation," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 28-41.

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    More about this item

    Keywords

    Corporate social network; Network centrality; Structural holes; Financing constraint; Ownership structure;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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