Financial Shared Service Center and Corporate Debt Financing Costs
As an effective tool for financial transformation,Financial Shared Service Center(FSSC)has been strongly supported by the Chinese government and its number has grown rapidly.Existing research shows that it is conducive to strengthening control,improving the quality of accounting in-formation,and alleviating market information asymmetry.Whether the establishment of FSSCs can reduce the cost of corporate debt financing?This paper takes China's A-share listed companies from 2003 to 2018 as a sample,and finds that FSSCs can significantly reduce the cost of corporate debt financing.The mechanism analysis shows that FSSCs can improve the quality of internal control,the information environment and the maturity structure of debt,so as to reduce the cost of debt financing.Further,FSSC's role in reducing debt financing costs is mainly concentrated in non-state-owned enterprises,high proportion of intangible assets,weak network relationship of directors,high degree of industry competition and high economic policy uncertainty are in the sub-sample.
Financial Shared Service CenterDebt Financing CostInternal Control QualityInformation Environment