Do Social Capital Building Strategies Influence the Financing Behavior of Chinese Private Small and Medium–Sized Enterprises?

Jun Du, Alessandra Guariglia and Alexander Newman

Entrepreneurship Theory and Practice, 2015, vol. 39, issue 3, 601-631

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.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1111/etap.12051 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:39:y:2015:i:3:p:601-631

DOI: 10.1111/etap.12051

Access Statistics for this article

More articles in Entrepreneurship Theory and Practice
Bibliographic data for series maintained by SAGE Publications ().