Social capital and leasing

Joshua Zhang; Hasibul Chowdhury; Jacquelyn E. Humphrey; Mostafa Monzur Hasan

doi:10.1016/j.gfj.2025.101173

Social capital and leasing

Joshua Zhang, Hasibul Chowdhury, Jacquelyn E. Humphrey, Mostafa Monzur Hasan^*

^*Corresponding author for this work

Department of Accounting and Corporate Governance

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Abstract

We examine the relationship between social capital and corporate leasing intensity. Using a large sample of publicly traded US firms, we find that firms headquartered in areas with high social capital lease less. The negative association is driven by both the social norms and social network components of social capital. Our channel analysis reveals that social capital has both a direct and an indirect effect on leasing, with the direct effect being significantly stronger. The indirect effect is due to social capital reducing financing constraints.

Original language	English
Article number	101173
Pages (from-to)	1-27
Number of pages	27
Journal	Global Finance Journal
Volume	67
DOIs	https://doi.org/10.1016/j.gfj.2025.101173
Publication status	Published - Sept 2025

Bibliographical note

© 2025 The Authors. Published by Elsevier Inc. Version archived for private and non-commercial use with the permission of the author/s and according to publisher conditions. For further rights please contact the publisher.

Keywords

Financing constraints
Information asymmetry
Leasing
Social capital

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10.1016/j.gfj.2025.101173Licence: CC BY

Publisher version (open access)Final published version, 1.14 MBLicence: CC BY

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title = "Social capital and leasing",

abstract = "We examine the relationship between social capital and corporate leasing intensity. Using a large sample of publicly traded US firms, we find that firms headquartered in areas with high social capital lease less. The negative association is driven by both the social norms and social network components of social capital. Our channel analysis reveals that social capital has both a direct and an indirect effect on leasing, with the direct effect being significantly stronger. The indirect effect is due to social capital reducing financing constraints.",

keywords = "Financing constraints, Information asymmetry, Leasing, Social capital",

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AU - Zhang, Joshua

AU - Chowdhury, Hasibul

AU - Humphrey, Jacquelyn E.

AU - Hasan, Mostafa Monzur

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PY - 2025/9

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N2 - We examine the relationship between social capital and corporate leasing intensity. Using a large sample of publicly traded US firms, we find that firms headquartered in areas with high social capital lease less. The negative association is driven by both the social norms and social network components of social capital. Our channel analysis reveals that social capital has both a direct and an indirect effect on leasing, with the direct effect being significantly stronger. The indirect effect is due to social capital reducing financing constraints.

AB - We examine the relationship between social capital and corporate leasing intensity. Using a large sample of publicly traded US firms, we find that firms headquartered in areas with high social capital lease less. The negative association is driven by both the social norms and social network components of social capital. Our channel analysis reveals that social capital has both a direct and an indirect effect on leasing, with the direct effect being significantly stronger. The indirect effect is due to social capital reducing financing constraints.

KW - Financing constraints

KW - Information asymmetry

KW - Leasing

KW - Social capital

UR - https://www.scopus.com/pages/publications/105014855045

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DO - 10.1016/j.gfj.2025.101173

M3 - Article

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VL - 67

SP - 1

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JO - Global Finance Journal

JF - Global Finance Journal

M1 - 101173

ER -

Social capital and leasing

Abstract

Bibliographical note

Keywords

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