Board Social Capital and Investment-Cash Flow Sensitivity
As the main body of investment activities,the board of directors is embedded in all kinds of complex relationship net-works,and its social capital can affect the investment efficiency of enterprises.This paper takes Shanghai and Shenzhen A-share listed companies from 2005 to 2022 as the research object,and empirically tests the relationship between board social capital and investment-cash flow sensitivity through panel data regression.The results show that board social capital can play three functions of resource support,supervision and governance,and strategic consulting,and effectively reduce investment-cash flow sensitivity.When the legal or trust environment is weak,the role of board social capital on investment-cash flow sensitivity will be en-hanced,reflecting the complementary role of social capital on the current imperfect legal and trust institutional environment in various regions of China.Further analysis shows that the social capital of independent directors can reduce the investment-cash flow sensitivity more effectively than that of non-independent directors.
Board social capitalInvestment-cash flow sensitivityLawTrust
NETL
NSTL
万方数据
