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

Jun Du; Alessandra Guariglia; Alexander Newman

doi:10.1111/etap.12051

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

Jun Du, Alessandra Guariglia, Alexander Newman^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

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.

Original language	English
Pages (from-to)	601-631
Number of pages	31
Journal	Entrepreneurship Theory and Practice
Volume	39
Issue number	3
Early online date	7 Jul 2013
DOIs	https://doi.org/10.1111/etap.12051
Publication status	Published - May 2015

Bibliographical note

This is the peer reviewed version of the following article: Du, J., Guariglia, A., & Newman, A. (2015). Do social capital building strategies influence the financing behavior of Chinese private small and medium-sized enterprises?. Entrepreneurship theory and practice, 39(3), 601-631, which has been published in final form at http://dx.doi.org/10.1111/etap.12051]. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Access to Document

10.1111/etap.12051

Social capital building strategies influence on the financing behavior of Chinese private enterprises
This is the peer reviewed version of the following article: Du, J., Guariglia, A., & Newman, A. (2015). Do social capital building strategies influence the financing behavior of Chinese private small and medium-sized enterprises?. Entrepreneurship theory and practice, 39(3), 601-631, which has been published in final form at http://dx.doi.org/10.1111/etap.12051. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Accepted author manuscript, 469 KB

http://onlinelibrary.wiley.com/doi/10.1111/etap.12051/abstract

Cite this

@article{96ac5b8f3fc84b5fbb5bf0ce40266b29,

title = "Do social capital building strategies influence the financing behavior of Chinese private small and medium-sized enterprises?",

abstract = "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.",

author = "Jun Du and Alessandra Guariglia and Alexander Newman",

note = "This is the peer reviewed version of the following article: Du, J., Guariglia, A., & Newman, A. (2015). Do social capital building strategies influence the financing behavior of Chinese private small and medium-sized enterprises?. Entrepreneurship theory and practice, 39(3), 601-631, which has been published in final form at http://dx.doi.org/10.1111/etap.12051]. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.",

year = "2015",

month = may,

doi = "10.1111/etap.12051",

language = "English",

volume = "39",

pages = "601--631",

journal = "Entrepreneurship Theory and Practice",

issn = "1042-2587",