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The dynamics of listed SMEs in China

Liu, J 2011, 'The dynamics of listed SMEs in China' , International Journal of Economics of Business . (In Press)

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    Abstract

    We examine the dynamics of Chinese listed SMEs with respect to their post-market viability and growth after going public. The Kaplan–Meier estimation shows that SMEs are more likely to transition to a non-viable state than large firms. Further examination using the Cox model and the random effects model shows that SME dynamics are shaped by heterogeneous firm and industry characteristics, as well as the underlying financial and institutional environments. SME viability is distinguished by its ability to grow through learning along with age, aided by lower business risk, more focused business, access to equity finance, and less exposure to competition in remote regions. SME growth is constrained by a dispersed ownership structure, insufficient infrastructure to protect firms that are active in R&D, and the limited financing role of equity markets. The study also reveals that government initiatives in support of strategic development in the service industries and in the coastal regions are of importance in spurring SME growth.

    Item Type: Article
    Themes: Subjects outside of the University Themes
    Schools: Colleges and Schools > College of Business & Law > Salford Business School > Finance, Accounting and Economics
    Journal or Publication Title: International Journal of Economics of Business
    Publisher: Taylor & Francis
    Refereed: Yes
    ISSN: 1357-1516
    Depositing User: JL Liu
    Date Deposited: 28 Oct 2011 11:57
    Last Modified: 22 Jul 2014 13:43
    URI: http://usir.salford.ac.uk/id/eprint/18721

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