Publication Type

Conference Paper

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This paper explores the links between entrepreneurs' social capital and post-IPO firm performance in China's unique capital market and regulatory setting. Using hand-collected data on entrepreneurs' political connections and firm financial information, we construct original measures for various types of social capital and examine their roles in determining the accounting and financial performance of entrepreneurial firms after an IPO. On one hand, firm accounting performance is enhanced by entrepreneurs' bridging social capital, such as political connections or a willingness to share power with external investors. On the other hand, bonding social capital such as intra-group related party transactions causes performance to decline. A similar effect exists on financial performance, such as a 3-year post-IPO abnormal stock return. Board size or independence, however, does not explain firm performance. The results suggest that entrepreneurs' social capital serves a positive governance role in the capital market.


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


Asian Studies | Business | Corporate Finance | Entrepreneurial and Small Business Operations

Research Areas

Strategy and Organisation


Academy of Management Proceedings






Academy of Management

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Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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