TY - JOUR
T1 - Social capital and access to bank financing
T2 - The case of Chinese entrepreneurs
AU - Talavera, Oleksandr
AU - Xiong, Lin
AU - Xiong, Xiong
N1 - Funding Information:
Oleksandr Talavera (oleksandr.talavera@gmail.com) is a lecturer in the School of Economics at the University of East Anglia, Norwich, UK. Lin Xiong (l.xiong@rgu.ac.uk) is a lecturer in economics in the Aberdeen Business School at the Robert Gordon University, Aberdeen, UK. Xiong Xiong (xxpeter@tju.edu.cn) is an associate professor in the Management School at Tianjin University, Tianjin, China. The authors thank participants of the Society of the Study of Emerging Markets Euroconference for valuable comments and suggestions. They are grateful to the Royal Society of Edinburgh and the National Natural Science Foundation of China for financial support.
PY - 2012/1/1
Y1 - 2012/1/1
N2 - This paper presents the results of a study of the effects of social capital on access to bank financing. Based on a Chinese nationwide survey, our analysis suggests that entrepreneurs who contribute to charities are more likely to be successful in loan applications. In addition, we find that political party membership is an important determinant of state-owned bank financing, whereas time spent on social activities increases the probability of obtaining loans from commercial banks. Therefore, our data provide some evidence for substitutability between various types of social capital. To obtain a loan from a specific type of bank, an entrepreneur should access the relevant social network.
AB - This paper presents the results of a study of the effects of social capital on access to bank financing. Based on a Chinese nationwide survey, our analysis suggests that entrepreneurs who contribute to charities are more likely to be successful in loan applications. In addition, we find that political party membership is an important determinant of state-owned bank financing, whereas time spent on social activities increases the probability of obtaining loans from commercial banks. Therefore, our data provide some evidence for substitutability between various types of social capital. To obtain a loan from a specific type of bank, an entrepreneur should access the relevant social network.
KW - China
KW - Entrepreneurs
KW - Social capital
UR - http://www.scopus.com/inward/record.url?scp=84861050917&partnerID=8YFLogxK
U2 - 10.2753/REE1540-496X480103
DO - 10.2753/REE1540-496X480103
M3 - Article
AN - SCOPUS:84861050917
SN - 1540-496X
VL - 48
SP - 55
EP - 69
JO - Emerging Markets Finance and Trade
JF - Emerging Markets Finance and Trade
IS - 1
ER -