The Relationship Between Social Capital And Bank Loan Contract Research

As one of the important financing channels,bank loan plays a vital role in financial and business development of enterprise.The current research on corporate finance theory is still limited by "Socialization Deficiency" paradigm which put forward by neo-classical economics,focusing on factors that influence the development of the financial markets under the formal system environment,such as legal environmental regimes and creditors'rights protection system,considering hardly ever the informal system.In fact,bank lending is the economic activities which embedded in social relations and social structures,it will inevitably be affected by some informal systems such as network relationships,trust,ethics and so on.Therefore,this paper argues that as a supplementary means of formal system,social capital is closely relate to bank loan contract.This study uses the existing literature and research results for reference,starting from two dimensions:micro(relate to the enterprise itself)and macro(relate to the area of enterprise belongs),in total of nine metrics to reflect comprehensively the level of social capital.In this paper,author use the factor analysis method to extracted a composite score for social capital,as explanatory variables,then empirically test the relationship between social capital and bank loan(as the explained variable,including four aspects:rate,scale,term and guarantee of loan)with four Models,using 501 listed non-financial enterprises in Shanghai and Shenzhen Stock Exchanges from 2011 to 2015 form panel data as samples.In addition,we joins the legal system environment as regulating variable,empirically tests whether there are differences in the impact of social capital on the bank loan contract under different legal system environment.The results indicate that social capital has an impact on bank loan contract through both the micro and macro levels,namely enterprise with high social capital will incline to obtain lower rates,higher scales,longer terms and lower collateral requirements.In addition,in the areas where the legal system environment is poor,the effect of social capital on the bank loan scale and loan term is more obvious,the negative correlation with loan guarantee is also more pronounce.