Corporate Resilience to Covid-19 Crisis: The Role of Managerial Bank-Connected Network

This paper examines the role of managerial bank-connected network on corporate resilience during the COVID-19 crisis. We find that managerial bank-connected network, as an important social capital, help firm experience fewer losses and recover more quickly during the COVID-19 crisis. We document that managerial bank-connected network helps firms build corporate resilience through facilitating firms’ accessibility of external financing and further reducing liquidity risk. Further analysis shows that the positive effect of managerial bank-connected network on corporate resilience is primarily found in non-state-owned enterprises, less government-supported firms, and the firms located in regions with low marketization, low financial development, and high Guanxi culture.