Impact of social drinking culture on the cost of bank loans: Rent-seeking or loan-contracting efficiency

IF 4.2 2区经济学 Q1 ECONOMICS

Economic Modelling Pub Date : 2024-10-18 DOI:10.1016/j.econmod.2024.106912

Jianhua Tan , Zhan Wang , Kam C. Chan

引用次数: 0

Abstract

This study investigates whether social drinking culture (SDC), as an informal institution, impacts the cost of bank loans to a firm. Studies suggest that SDC influences individual behavior by fostering interpersonal relationships. Few studies have explored the impact of SDC on corporate borrowing. We argue that executives use SDC to obtain bank loans at lower interest rates. However, the mechanism remains unclear. Firms can leverage SDC to engage in rent-seeking from or improve communication with lenders. We tested the hypothesis and the underlying mechanism on a sample of Chinese firms from 2011 to 2020. Results suggest that the SDC lowers bank loan rates for firms and supports the rent-seeking mechanism. Furthermore, firms in strong SDC regions have larger sizes, longer maturities, and more non-collateralized loans but perform poorly in corporate and bank loans. Therefore, strong SDC is used by firms to engage in rent-seeking borrowing, resulting in credit resource misallocation.

查看原文本刊更多论文

社交饮酒文化对银行贷款成本的影响：寻租效率还是贷款签约效率

本研究探讨了社交饮酒文化（SDC）作为一种非正式制度，是否会影响企业的银行贷款成本。研究表明，SDC 通过促进人际关系来影响个人行为。很少有研究探讨 SDC 对企业借贷的影响。我们认为，高管会利用 SDC 以较低的利率获得银行贷款。然而，其中的机制仍不清楚。企业可以利用 SDC 向贷款人寻租或改善与贷款人的沟通。我们以 2011 年至 2020 年的中国企业为样本，检验了这一假设及其内在机制。结果表明，SDC 降低了企业的银行贷款利率，支持了寻租机制。此外，SDC 强地区的企业规模更大、期限更长、非抵押贷款更多，但在企业贷款和银行贷款方面表现不佳。因此，强 SDC 被企业用来进行寻租借贷，导致信贷资源配置不当。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Economic Modelling ECONOMICS-

CiteScore

8.00

自引率

10.60%

发文量

295

期刊介绍： Economic Modelling fills a major gap in the economics literature, providing a single source of both theoretical and applied papers on economic modelling. The journal prime objective is to provide an international review of the state-of-the-art in economic modelling. Economic Modelling publishes the complete versions of many large-scale models of industrially advanced economies which have been developed for policy analysis. Examples are the Bank of England Model and the US Federal Reserve Board Model which had hitherto been unpublished. As individual models are revised and updated, the journal publishes subsequent papers dealing with these revisions, so keeping its readers as up to date as possible.