Skip to main navigation Skip to search Skip to main content

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
  • University College Birmingham
  • Monash University

Research output: Contribution to journalArticlepeer-review

84   Link opens in a new tab Citations (SciVal)
846 Downloads (Pure)

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 languageEnglish
Pages (from-to)601-631
Number of pages31
JournalEntrepreneurship Theory and Practice
Volume39
Issue number3
Early online date7 Jul 2013
DOIs
Publication statusPublished - 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.

Fingerprint

Dive into the research topics of 'Do social capital building strategies influence the financing behavior of Chinese private small and medium-sized enterprises?'. Together they form a unique fingerprint.

Cite this