Abstract: Chain Chief System in the Industrial Chain is an industrial policy with distinctive Chinese institutional characteristics implemented by local governments in response to environmental uncertainties under a “dual circulation” development pattern, which is of great significance to high-quality economic development. Based on the samples of A-share listed companies from 2013 to 2023, this paper explores the microeconomic consequences of implementing the Chain Chief System in the Industrial Chain from the perspective of cost of corporate debt. The empirical results indicate that this policy can effectively reduce corporate debt cost. These effects are more pronounced in scenarios where the government places a higher level of importance, as well as in midstream industries, non-leading enterprises, private enterprises, and those with higher levels of financing constraints. Further analysis reveals that the Chain Chief System in the Industrial Chain reduces corporate debt cost by mitigating corporate debt risk, enabling companies to secure more long-term debt financing and enjoy longer debt maturities. The conclusion verifies the positive effects of the Chain Chief System in the Industrial Chain.This paper enriches the literature on industrial policy and the cost of corporate debt, and has great practical significance. On the one hand, this paper provides new evidence support for the subsequent in-depth implementation of the industrial policy which ensures better alignment between an efficient market and a well-functioning government, and responds to the requirement of “enhancing the resilience and security of industrial and supply chains” put forward at the 20th CPC National Congress. On the other hand, the research results of this paper show that the implementation of the Chain Chief System in the Industrial Chain can reduce corporate debt cost, which also has important reference value for improving the financing ability of enterprises, maintaining the normal operation and long-term development of enterprises, and achieving high-quality development.

Key words: industrial chain, Chain Chief System, corporate debt cost, industrial policy