Social Capital, Informal Governance, and Post-IPO Firm Performance: A Study of Chinese Entrepreneurial Firms

Jerry X. Cao (First Author), Hua Zhang (Participant Author), Yuan Ding (Participant Author)

科研成果: 期刊稿件期刊论文

19 引用 (Web of Science)

摘要

Social capital can serve as informal governance in weak investor-protection regimes. Using hand-collected data on entrepreneurs’ political connections and firm ownership, we construct several original measures of social capital and examine their effect on the performance of entrepreneurial firms in China after their initial public offerings. Political connections or a high percentage of external investors tend to enhance firm performance, but intragroup related-party transactions commonly lead to performance decline. These forms of social capital have a strong influence on the performance of Chinese firms, whereas formal governance variables such as board size or board independence have little effect. Although social capital may serve as an informal governance mechanism and effectively substitute for formal governance mechanisms in an emerging market, this role of social capital raises several ethical concerns, notably the development of rent-seeking and crony capitalism.
源语言英语
页(从-至)529-551
期刊Journal of Business Ethics
134
4
DOI
出版状态已出版 - 2016

Corresponding author email

zhua@ceibs.edu

Project name

CEIBS Research Fund

Project sponsor

其他

Project No.

N/A

关键词

  • Agency theory
  • China
  • Entrepreneur
  • Political connection
  • Post-IPO performance
  • Social capital

成果物的来源

  • FT
  • ABDC-A
  • Scopus
  • SSCI

指纹

探究 'Social Capital, Informal Governance, and Post-IPO Firm Performance: A Study of Chinese Entrepreneurial Firms' 的科研主题。它们共同构成独一无二的指纹。

引用此