Effects of Social Capital,Top Executive Attributes and R&D on Firm Value in Chinese Small and Medium-sized Enterprises

This study uses an unbalanced panel data analysis to examine the effects of social capital,top executive attributes and R&D on firm value in Chinese small and medium-sized enterprises(SMEs)listed on the Shenzhen Stock Exchange Small and Medium-sized Enterprises Board from 2007 to 2011.There are several interesting findings.First,the gender(male)and academic degree of the chairperson in the SMEs have a positive and significant effect on firm value.Second,social capital(measured by political connections,managerial business association networks and technology association networks)and R&D have a positive effect on SMEfirm value.Third,the effect of political connections on firm value for state-owned enterprises(SOEs)is stronger than for non-SOEs,while the effect of business and technology networks on firm value for non-SOEs is stronger than for SOEs.Our study has important policy implications for SMEs that want to compete successfully in China.