{"title":"CEO地域性对债务融资成本的影响:区域异质性的作用","authors":"Yan Tong, Yuan Tian, Zhangfan Cao","doi":"10.1080/00343404.2023.2267585","DOIUrl":null,"url":null,"abstract":"ABSTRACTWe examine whether chief executive officer (CEO) locality affects firms’ cost of debt. Drawing upon place attachment theories suggesting individuals develop affective bonds with their hometowns, we find robust evidence that firms employing local CEOs tend to have a lower cost of debt than those with non-local CEOs. More importantly, we find that regional heterogeneity plays an important role in shaping the relationship from economic and cultural perspectives. The effect is more pronounced in regions where the economies and marketisation are less developed. Furthermore, we show that the effect of CEO locality is stronger in regions with collectivism and regions with low social trust. Our findings hold up to numerous robustness checks and endogeneity tests. Overall, our study highlights the prominent role of the geographically segmented CEO labour markets as an intrinsic but underexplored non-contractual factor for value creation.KEYWORDS: local chief executive officerslocalitycost of debtplace attachment theoryJEL: G3G10Z12 DISCLOSURE STATEMENTNo potential conflict of interest was reported by the authors.Notes1. According to the Wind database, by the end of 2021, the total outstanding bonds of Chinese firms (corporate bonds, enterprise bonds and medium-term notes) reached 20,072 trillion RMB, nearly 29 times that of 2008 (702 trillion RMB).2. Based on prior studies (Lai et al., Citation2020), board directors are likely to be from the local business circle, and therefore they tend to have more information about local CEOs in recruitment. As a result, directors are more confident and informative about their locally hired CEOs who would, in turn, face less pressure to boost short-term performance.3. We thank the anonymous reviewer for providing this suggestion about the collinearity test. In addition, in untabulated results, our stationary tests also suggest that the variable SPREAD is not seriously subject to stationarity concerns.4. In untabulated results, the correlation matrix also shows a negative and statistically significant correlation between local CEOs and the cost of debt.5. In untabulated results, as an additional test we also find that the effect of local CEO on the cost of debt is more pronounced for non-SOE firms.Additional informationFundingThis study was supported by the National Natural Science Foundation of China [grant numbers 72072012, 71972010 and 71972011] and the National Social Science Fund of China [grant number 22BGL088].","PeriodicalId":21097,"journal":{"name":"Regional Studies","volume":"96 7","pages":"0"},"PeriodicalIF":4.4000,"publicationDate":"2023-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"The effect of CEO locality on the cost of debt financing: the role of regional heterogeneity\",\"authors\":\"Yan Tong, Yuan Tian, Zhangfan Cao\",\"doi\":\"10.1080/00343404.2023.2267585\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"ABSTRACTWe examine whether chief executive officer (CEO) locality affects firms’ cost of debt. Drawing upon place attachment theories suggesting individuals develop affective bonds with their hometowns, we find robust evidence that firms employing local CEOs tend to have a lower cost of debt than those with non-local CEOs. More importantly, we find that regional heterogeneity plays an important role in shaping the relationship from economic and cultural perspectives. The effect is more pronounced in regions where the economies and marketisation are less developed. Furthermore, we show that the effect of CEO locality is stronger in regions with collectivism and regions with low social trust. Our findings hold up to numerous robustness checks and endogeneity tests. Overall, our study highlights the prominent role of the geographically segmented CEO labour markets as an intrinsic but underexplored non-contractual factor for value creation.KEYWORDS: local chief executive officerslocalitycost of debtplace attachment theoryJEL: G3G10Z12 DISCLOSURE STATEMENTNo potential conflict of interest was reported by the authors.Notes1. According to the Wind database, by the end of 2021, the total outstanding bonds of Chinese firms (corporate bonds, enterprise bonds and medium-term notes) reached 20,072 trillion RMB, nearly 29 times that of 2008 (702 trillion RMB).2. Based on prior studies (Lai et al., Citation2020), board directors are likely to be from the local business circle, and therefore they tend to have more information about local CEOs in recruitment. As a result, directors are more confident and informative about their locally hired CEOs who would, in turn, face less pressure to boost short-term performance.3. We thank the anonymous reviewer for providing this suggestion about the collinearity test. In addition, in untabulated results, our stationary tests also suggest that the variable SPREAD is not seriously subject to stationarity concerns.4. In untabulated results, the correlation matrix also shows a negative and statistically significant correlation between local CEOs and the cost of debt.5. 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引用次数: 0
摘要
摘要本文考察了首席执行官(CEO)的局部性是否影响企业的债务成本。根据地方依恋理论,我们发现雇佣本地ceo的公司往往比雇佣非本地ceo的公司债务成本更低。更重要的是,我们发现从经济和文化的角度来看,区域异质性在形成关系中起着重要作用。这种影响在经济和市场化程度较低的地区更为明显。此外,我们发现CEO地域性的影响在集体主义和社会信任度较低的地区更强。我们的发现坚持了许多稳健性检查和内生性检验。总体而言,我们的研究强调了地理上分割的首席执行官劳动力市场作为价值创造的内在但未被充分探索的非合同因素的突出作用。关键词:地方首席执行官地方债务成本地方依附理论披露声明作者未报告潜在利益冲突。Wind数据库显示,截至2021年底,中国企业债券(公司债、企业债和中期票据)余额总额达到20072万亿元人民币,是2008年(702万亿元人民币)的近29倍。根据之前的研究(Lai et al., Citation2020),董事会董事很可能来自当地商界,因此他们在招聘时往往有更多关于当地ceo的信息。因此,董事们对当地聘请的首席执行官更有信心,也更了解他们,而这些首席执行官在提高短期业绩方面面临的压力也更小。我们感谢匿名审稿人提供关于共线性测试的建议。此外,在未列表的结果中,我们的平稳性检验也表明,变量SPREAD不受平稳性问题的严重影响。在未列表的结果中,相关矩阵也显示地方首席执行官与债务成本之间存在负的和统计上显著的相关关系。在未列表的结果中,作为一个额外的测试,我们还发现,在非国有企业中,地方首席执行官对债务成本的影响更为明显。本研究得到国家自然科学基金项目[批准号:72072012,71972010和71972011]和国家社会科学基金项目[批准号:22BGL088]的支持。
The effect of CEO locality on the cost of debt financing: the role of regional heterogeneity
ABSTRACTWe examine whether chief executive officer (CEO) locality affects firms’ cost of debt. Drawing upon place attachment theories suggesting individuals develop affective bonds with their hometowns, we find robust evidence that firms employing local CEOs tend to have a lower cost of debt than those with non-local CEOs. More importantly, we find that regional heterogeneity plays an important role in shaping the relationship from economic and cultural perspectives. The effect is more pronounced in regions where the economies and marketisation are less developed. Furthermore, we show that the effect of CEO locality is stronger in regions with collectivism and regions with low social trust. Our findings hold up to numerous robustness checks and endogeneity tests. Overall, our study highlights the prominent role of the geographically segmented CEO labour markets as an intrinsic but underexplored non-contractual factor for value creation.KEYWORDS: local chief executive officerslocalitycost of debtplace attachment theoryJEL: G3G10Z12 DISCLOSURE STATEMENTNo potential conflict of interest was reported by the authors.Notes1. According to the Wind database, by the end of 2021, the total outstanding bonds of Chinese firms (corporate bonds, enterprise bonds and medium-term notes) reached 20,072 trillion RMB, nearly 29 times that of 2008 (702 trillion RMB).2. Based on prior studies (Lai et al., Citation2020), board directors are likely to be from the local business circle, and therefore they tend to have more information about local CEOs in recruitment. As a result, directors are more confident and informative about their locally hired CEOs who would, in turn, face less pressure to boost short-term performance.3. We thank the anonymous reviewer for providing this suggestion about the collinearity test. In addition, in untabulated results, our stationary tests also suggest that the variable SPREAD is not seriously subject to stationarity concerns.4. In untabulated results, the correlation matrix also shows a negative and statistically significant correlation between local CEOs and the cost of debt.5. In untabulated results, as an additional test we also find that the effect of local CEO on the cost of debt is more pronounced for non-SOE firms.Additional informationFundingThis study was supported by the National Natural Science Foundation of China [grant numbers 72072012, 71972010 and 71972011] and the National Social Science Fund of China [grant number 22BGL088].
期刊介绍:
Regional Studies is a leading international journal covering the development of theories and concepts, empirical analysis and policy debate in the field of regional studies. The journal publishes original research spanning the economic, social, political and environmental dimensions of urban and regional (subnational) change. The distinctive purpose of Regional Studies is to connect insights across intellectual disciplines in a systematic and grounded way to understand how and why regions and cities evolve. It publishes research that distils how economic and political processes and outcomes are contingent upon regional and local circumstances. The journal is a pluralist forum, which showcases diverse perspectives and analytical techniques. Essential criteria for papers to be accepted for Regional Studies are that they make a substantive contribution to scholarly debates, are sub-national in focus, conceptually well-informed, empirically grounded and methodologically sound. Submissions are also expected to engage with wider debates that advance the field of regional studies and are of interest to readers of the journal.