Can CFOs improve enterprise loan bargaining power? An empirical analysis based on CFO characteristics

IF 6.9 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2025-05-01 DOI:10.1016/j.ribaf.2025.102937

Qi Wei , QingWen Feng , ZhiYang Hui , Yan Dong

{"title":"Can CFOs improve enterprise loan bargaining power? An empirical analysis based on CFO characteristics","authors":"Qi Wei , QingWen Feng , ZhiYang Hui , Yan Dong","doi":"10.1016/j.ribaf.2025.102937","DOIUrl":null,"url":null,"abstract":"<div><div>The bargaining space between borrowers and lenders in negotiating loan prices has expanded with the deepening of China's interest rate marketisation reform. This study constructs a bargaining game model to examine the intrinsic mechanism through which chief financial officers (CFOs) affect corporate loan bargaining power. A two-tier stochastic frontier model is adopted to measure borrowers’ and lenders’ loan bargaining power, and the relationship between CFOs' background, internal part-time jobs, tenure, gender, educational characteristics, and corporate loan bargaining power is empirically investigated using data from Chinese listed companies from 2008 to 2022. Regarding the findings, first, the negotiation bargaining power of enterprises is weaker than that of lenders, leading to the negotiated loan price being higher than the ‘fair’ price, and pushing up the financing cost of enterprises to a certain extent. Second, CFOs can reduce enterprises’ loan negotiation costs by broadening enterprises’ financing channels and improving negotiation efficiency, thereby enhancing their loan negotiation power. Third, CFOs with experience in the financial industry or those who are also CEOs can enhance their corporate loan bargaining power; however, their tenure, gender, and education do not affect corporate loan bargaining power. This study expands the research on the impact of CFOs on corporate financing costs and factors affecting loan prices. The results provide a reference point for enterprises when selecting CFOs to enhance their bargaining power for loans and reduce their financing costs.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"77 ","pages":"Article 102937"},"PeriodicalIF":6.9000,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Research in International Business and Finance","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S027553192500193X","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}

引用次数: 0

Abstract

The bargaining space between borrowers and lenders in negotiating loan prices has expanded with the deepening of China's interest rate marketisation reform. This study constructs a bargaining game model to examine the intrinsic mechanism through which chief financial officers (CFOs) affect corporate loan bargaining power. A two-tier stochastic frontier model is adopted to measure borrowers’ and lenders’ loan bargaining power, and the relationship between CFOs' background, internal part-time jobs, tenure, gender, educational characteristics, and corporate loan bargaining power is empirically investigated using data from Chinese listed companies from 2008 to 2022. Regarding the findings, first, the negotiation bargaining power of enterprises is weaker than that of lenders, leading to the negotiated loan price being higher than the ‘fair’ price, and pushing up the financing cost of enterprises to a certain extent. Second, CFOs can reduce enterprises’ loan negotiation costs by broadening enterprises’ financing channels and improving negotiation efficiency, thereby enhancing their loan negotiation power. Third, CFOs with experience in the financial industry or those who are also CEOs can enhance their corporate loan bargaining power; however, their tenure, gender, and education do not affect corporate loan bargaining power. This study expands the research on the impact of CFOs on corporate financing costs and factors affecting loan prices. The results provide a reference point for enterprises when selecting CFOs to enhance their bargaining power for loans and reduce their financing costs.

查看原文本刊更多论文

首席财务官能否提高企业贷款议价能力？基于CFO特征的实证分析

随着中国利率市场化改革的深入，贷款双方在谈判贷款价格方面的讨价还价空间有所扩大。本文构建了一个议价博弈模型，探讨了首席财务官影响企业贷款议价能力的内在机制。采用两层随机前沿模型对借款人和贷款人的贷款议价能力进行测度，并利用2008 - 2022年中国上市公司的数据，实证研究cfo的背景、内部兼职、任期、性别、学历特征与企业贷款议价能力的关系。研究发现，首先，企业的谈判议价能力弱于贷款人，导致谈判的贷款价格高于“公平”价格，在一定程度上推高了企业的融资成本。第二，cfo可以拓宽企业融资渠道，提高谈判效率，降低企业的贷款谈判成本，从而增强企业的贷款谈判能力。第三，具有金融行业经验的首席财务官或兼任首席执行官的首席财务官可以提高他们在企业贷款方面的议价能力；然而，他们的任期、性别和教育程度并不影响企业贷款的议价能力。本研究拓展了财务总监对企业融资成本的影响及贷款价格影响因素的研究。研究结果为企业选择财务总监提高贷款议价能力、降低融资成本提供了参考依据。

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

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance