How social activities affect corporate credit behavior? – the mediating role of network centrality

Abstract

Purpose

Social information is crucial to credit ratings and can improve the accuracy of the traditional credit assessment model. Drawing on the resource-based view (RBV) and social capital theory (SCT), this research explores the relationships between corporate social activities, network centrality and corporate credit behavior.

Design/methodology/approach

The authors used social network analysis (SNA) and regression analysis to analyze the data collected from 14,544 enterprises on the Alibaba platform.

Findings

The results indicate that among the four types of social activities, the number of corporate questions and posts shows a positive relationship with credit behavior; while the number of corporate comments has negative relationship with credit behavior. Further, degree and betweenness centralities mediate the relationship between the number of corporate questions, posts and comments with credit behavior.

Originality/value

This study contributes to the literature on non-financial factors (soft information) by exploring the social behavioral factors related to corporate credit. In addition, this study offers a new theoretical lens and reasonable explanations for investigating the relationship between corporate social activities, network centrality and credit behavior from the perspective of the resource-based view, while most studies are predictive and methodological. Moreover, this study provides new insights for platforms to evaluate enterprise credit and for managers to improve credit behavior.

Citation

Chen, X. and Li, W. (2023), "How social activities affect corporate credit behavior? – the mediating role of network centrality", Industrial Management & Data Systems, Vol. 123 No. 7, pp. 1936-1960. https://doi.org/10.1108/IMDS-10-2022-0586