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Do social capital building strategies influence the financing behavior of chinese private small and medium-sized enterprises?

journal contribution
posted on 2015-01-01, 00:00 authored by J Du, A Guariglia, Alexander NewmanAlexander Newman
© 2013 Baylor University. Using data from 65,485 Chinese private small and medium-sized enterprises over the period 2000-2006, we examine the extent to which firms can improve access to debt by adopting strategies aimed at building social capital, namely entertaining and gift giving to others in their social network, and obtaining political affiliation. We find that although entertainment and gift-giving expenditure leads to higher levels of total and short-term debt, it does not enable firms to obtain greater long-term debt. In contrast, we demonstrate that obtaining political affiliation allows firms greater access to long-term debt.

History

Journal

Entrepreneurship: theory and practice

Volume

39

Issue

3

Pagination

601 - 631

Publisher

Wiley

Location

Malden, Mass.

ISSN

1042-2587

eISSN

1540-6520

Language

eng

Publication classification

C1.1 Refereed article in a scholarly journal; C Journal article

Copyright notice

2015, Wiley