Bank financing in China’s private sector : the payoffs of political capital
In Reform Era China, bank financing plays a significant role in entrepreneurial development, despite a severe information asymmetry problem and a discriminatory legal/regulatory environment. This paper offers a political explanation for how Chinese entrepreneurs obtain bank loans by arguing that ent...
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2012
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/94491 http://hdl.handle.net/10220/7499 |
| _version_ | 1826115956852654080 |
|---|---|
| author | Zhou, Wubiao |
| author2 | School of Humanities and Social Sciences |
| author_facet | School of Humanities and Social Sciences Zhou, Wubiao |
| author_sort | Zhou, Wubiao |
| collection | NTU |
| description | In Reform Era China, bank financing plays a significant role in entrepreneurial development, despite a severe information asymmetry problem and a discriminatory legal/regulatory environment. This paper offers a political explanation for how Chinese entrepreneurs obtain bank loans by arguing that entrepreneurs actively invest in political capital to overcome bank financing obstacles. Pursuing membership in the legislative or semi-legislative organs of the Chinese government is an effective strategy for private entrepreneurs to obtain political capital. Empirical analysis suggests that a legislative membership helps entrepreneurs get access to bank loans; and it may be more useful for small and medium enterprises. |
| first_indexed | 2024-10-01T04:03:34Z |
| format | Journal Article |
| id | ntu-10356/94491 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T04:03:34Z |
| publishDate | 2012 |
| record_format | dspace |
| spelling | ntu-10356/944912020-03-07T12:10:39Z Bank financing in China’s private sector : the payoffs of political capital Zhou, Wubiao School of Humanities and Social Sciences DRNTU::Social sciences::Economic development::China In Reform Era China, bank financing plays a significant role in entrepreneurial development, despite a severe information asymmetry problem and a discriminatory legal/regulatory environment. This paper offers a political explanation for how Chinese entrepreneurs obtain bank loans by arguing that entrepreneurs actively invest in political capital to overcome bank financing obstacles. Pursuing membership in the legislative or semi-legislative organs of the Chinese government is an effective strategy for private entrepreneurs to obtain political capital. Empirical analysis suggests that a legislative membership helps entrepreneurs get access to bank loans; and it may be more useful for small and medium enterprises. Accepted version 2012-02-03T03:17:14Z 2019-12-06T18:57:02Z 2012-02-03T03:17:14Z 2019-12-06T18:57:02Z 2009 2009 Journal Article Zhou, W. (2009) Bank Financing in China’s Private Sector:The Payoffs of Political Capital. World Development, 37(4), 787-799. 0305-750X https://hdl.handle.net/10356/94491 http://hdl.handle.net/10220/7499 10.1016/j.worlddev.2008.07.011 en World development © 2008 Elsevier. This is the author created version of a work that has been peer reviewed and accepted for publication by World Development, Elsevier. It incorporates referee’s comments but changes resulting from the publishing process, such as copyediting, structural formatting, may not be reflected in this document. The published version is available at: [DOI: http://dx.doi.org/10.1016/j.worlddev.2008.07.011 ] 43 p. application/pdf |
| spellingShingle | DRNTU::Social sciences::Economic development::China Zhou, Wubiao Bank financing in China’s private sector : the payoffs of political capital |
| title | Bank financing in China’s private sector : the payoffs of political capital |
| title_full | Bank financing in China’s private sector : the payoffs of political capital |
| title_fullStr | Bank financing in China’s private sector : the payoffs of political capital |
| title_full_unstemmed | Bank financing in China’s private sector : the payoffs of political capital |
| title_short | Bank financing in China’s private sector : the payoffs of political capital |
| title_sort | bank financing in china s private sector the payoffs of political capital |
| topic | DRNTU::Social sciences::Economic development::China |
| url | https://hdl.handle.net/10356/94491 http://hdl.handle.net/10220/7499 |
| work_keys_str_mv | AT zhouwubiao bankfinancinginchinasprivatesectorthepayoffsofpoliticalcapital |