This paper examines the impact of equity networks on corporate debt financing costs using a sample of A-share listed companies in Shanghai and Shenzhen from 2010 to 2022.The study finds that being embedded in an equity network helps reduce corporate debt financing costs.The higher the centrality of a company's equity network and the richer the structural holes it occupies,the lower the corporate debt financing costs.Mechanism analysis indicates that equity networks primarily achieve this by reducing information asymmetry,transmitting value signals,and alleviating agency problems.Further analysis shows that the role of equity networks in reducing corporate debt financing costs is more significant in companies with lower audit quality,in regions with lower levels of marketization,and in highly competitive industries.In equity networks formed by non-state shareholders and stable institutional investors,the effect of equity network centrality on reducing debt financing costs is more pronounced.This research provides valuable insights for fully leveraging the information governance function of equity networks,guiding capital to play a better role,and improving corporate debt financing practices.
维普
万方数据