An Empirical Study of Political Connections and SME Credit Financing: Evidence from Chinese Listed Companies

Su Zhang

doi:10.4028/www.scientific.net/AMR.850-851.1036

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HomeAdvanced Materials ResearchAdvanced Materials Research Vols. 850-851An Empirical Study of Political Connections and...

An Empirical Study of Political Connections and SME Credit Financing: Evidence from Chinese Listed Companies

Abstract:

A challenge for many small and medium sized enterprises (SME) is access to financing. Using a sample of companies listed on the Shenzhen SME board over the period 2010 to 2012, I investigate the extent of political connections in SME firms. I find that private entrepreneurs with political connection have the positive effect on the firms credit financing. Further, the roles of political connections are more important in regions in which the local economy is less market-oriented. My findings support the hypothesis of rent-seeking through political participation.

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Periodical:

Advanced Materials Research (Volumes 850-851)

Pages:

1036-1039

DOI:

https://doi.org/10.4028/www.scientific.net/AMR.850-851.1036

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Online since:

December 2013

Authors:

Su Zhang*

Keywords:

Political Connections, Rent-Seeking, SME Credit Financing

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* - Corresponding Author

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