Research On The Impact Of CEO’s Financial Institution Background On Corporate Credit Efficiency

At present,credit financing still occupies the dominant position of financing in the financial market.But at the same time,the existence of credit rationing problem makes enterprises face the dual dilemma of difficult and expensive financing,which limits the development of enterprises.In this context,how to improve credit efficiency,that is,to obtain sufficient credit funds at a low cost and increase the long-term credit ratio,has become an urgent problem for enterprises to solve.In recent years,more and more companies have begun to try to solve this problem by seeking financial connections,and by hiring executives with a background in financial institutions to give full play to their financial background advantages.Based on this,this paper,from the perspective of CEO,explores whether his background in financial institutions really promotes the efficiency of corporate credit(namely,credit scale,credit cost and long-term credit ratio),in order to provide a feasible way for enterprises to ease the constraints of credit financing.On the basis of theoretical analysis,this paper selects the annual data of a-share non-financial listed companies in the recent ten years from 2011 to 2020,conducts econometric analysis through regression model,and adopts PSM model to conduct robustness test.The results of the two models are verified mutually.Through normative analysis and empirical testing,this thesis draws the following conclusions:(1)The influence mechanism of the CEO’s financial institution background on corporate credit efficiency includes five points:information asymmetry mitigation mechanism,knowledge and ability branding mechanism,reputation incentive mechanism,resource effect mechanism and relational lending mechanism.At the same time,there is a positive interaction between the mechanisms,which further strengthens the favorable impact of the CEO’s financial institution background on the three aspects of credit efficiency.(2)There are differences in the impact mechanism of CEOs with different financial institution background categories on corporate credit efficiency.The influence mechanism of CEO’s banking financial institution background on corporate credit efficiency includes the five aspects mentioned above.The CEO’s background in securities industry and financial institutions and other financial institutions mainly affect the cost of corporate credit through the knowledge and ability branding mechanism.(3)The empirical results show that the CEO’s financial institution background has a significant positive effect on corporate credit scale and long-term credit ratio,and a significant negative effect on credit cost.That is to say,the CEO’s financial institution background has a positive effect on corporate credit efficiency,which is conducive to increasing corporate credit scale,reducing credit cost and increasing long-term credit ratio.(4)The measurement results show that the effects of CEO’s different financial institution background categories on the three aspects of corporate credit efficiency are different.The CEO’s background in banking financial institutions has significant positive,negative and positive effects on corporate credit scale,credit cost,and long-term credit ratio,respectively;The CEO’s background in the securities industry and other financial institutions has a significant negative impact on credit costs,only.In general,the CEO’s background in financial institutions can play a positive role in increasing the scale of credit,the proportion of long-term credit,and reducing the cost of credit,which is conducive to improving the efficiency of corporate credit.It is feasible for enterprises to solve their own credit financing difficulties by employing persons with financial institution backgrounds as CEOs.