Executive Social Network and Commercial Credit

Abstract

This paper chose the sample of China's non-financial insurance listed companies in Shanghai and Shenzhen A share from 2010 to 2017 to assess the effect of executives' social network on the commercial credit of companies. In this study, the executive social network had a significantly positive impact on the commercial credit of listed companies, indicating that the stronger the executive social network, the more commercial credit the corporate receives. These results suggest that social network have an important governance role for commercial credit transactions.