Author(s)

Jing Zhang ¹, Kai Tang ¹

Affiliation(s)

¹ School of Economics and Management, Taizhou University, Taizhou, 225300, China

Corresponding Author

Kai Tang

ABSTRACT

This study empirically investigates the impact of patient capital on the cost of debt based on a sample of A-share listed companies in China from 2009 to 2024. We find that the patience capital reduces the firms’ cost of debt by improving corporate governance and increasing firm value. After controlling for heteroscedasticity and endogeneity, our conclusions remain valid. Our study further expands the study on the economic consequences of patient capital and reveals that patient capital can reduce corporate debt financing costs, thereby emphasizing that the government should encourage the development of patient capital. Furthermore, our study also provides practical guidance for reducing corporate financing costs.

KEYWORDS

Patient capital, Cost of debt, Corporate governance, Firm value

CITE THIS PAPER

Jing Zhang, Kai Tang. The Influence of Patient Capital on the Cost of Debt. Accounting, Auditing and Finance (2026). Vol. 7, No.1, 1-7. DOI: http://dx.doi.org/10.23977/accaf.2026.070101.

REFERENCES

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