The role of social capital in private placement: evidence from Rule 144A debt issuances

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jianrong Wang ◽  
Haizhi Wang ◽  
Desheng Yin ◽  
Yun Zhu
Keyword(s):  
Social Capital ◽  
Heckman Selection Model ◽  
Yield Spreads ◽  
Content Type ◽  
Private Placement ◽  
Variable Approach ◽  
The Cost ◽  
Instrumental Variable Approach ◽  
Heckman Selection

PurposeThe purpose of this paper is to investigate the role of social capital in the issuances of Rule 144A debt. Using a sample of 1,378 debt offerings from 1997 to 2015 in the US, this paper provides empirical evidence on whether and to what extent social capital affects the cost of Rule 144A debt.Design/methodology/approachThis paper employs a county-level measure of social capital and links social capital to the yield spreads of Rule 144A debt. A Heckman selection model is sued to address the sample selection bias, and an instrumental variable approach and propensity score matching methodology are implemented to deal with the potential endogeneity issue. The authors check for robustness using an alternative measure of social capital.FindingsThe results of the analysis provide evidence that issuers headquartered in the counties with higher levels of social capital experience lower yield spreads in their Rule 144A debt offerings. The findings are robust to a Heckman selection model, an instrumental variable approach and propensity score matching. Furthermore, the analysis reveals the marginal effect of social capital that the effect of social capital is more pronounced for the issuing firms with higher agency cost of debt and lower institutional ownership. The effect of social capital is more prominent after financial crisis.Originality/valueThis paper provides novel evidence of the effect of social capital on the cost of privately placed debt. The issuances of Rule 144A debt are subject to significant information asymmetry and are targeted at sophisticated institutional investors. This paper sheds further light on how institutional investors incorporate the regional social capital in their pricing scheme of private placement of Rule 144A debt.

Bribery in subsidized credit markets: evidence from Bangladesh

2014 ◽  
Vol 7 (1) ◽  
pp. 61-72 ◽  
Author(s):  
Emmanuel Dechenaux ◽  
Aaron Lowen ◽  
Andrew Samuel
Keyword(s):  
Credit Markets ◽  
Theoretical Models ◽  
Heckman Selection Model ◽  
Data Set ◽  
Content Type ◽  
Microfinance Institution ◽  
The Relationship ◽  
The Empirical Analysis ◽  
Heckman Selection

Purpose – The aim of this paper is to study the role of bribery in subsidized credit markets in developing countries. First, the authors use the data to test whether more productive borrowers will pay larger or smaller bribes since the theoretical literature offers conflicting findings regarding the relationship between the size of the bribe and the productivity of borrowers. Second, the authors test whether being eligible to borrow from a microfinance institution affects the frequency or the magnitude of the bribe paid when borrowing from a (non-microfinance) subsidized bank. Design/methodology/approach – The empirical analysis is based on existing theoretical models of bribery. The data set uses publicly available survey data from the Bangladesh Institute for Development Studies. The primary linear model is estimated using OLS. Because left-censoring affects the data, the authors also estimate a Tobit model. Finally, to correct for potential selection bias, the authors also estimate a Heckman selection model. Findings – The authors find that more productive borrowers pay lower bribes than less productive borrowers and that being MFI-eligible affects the frequency of bribery, but not the magnitude of the bribe. Originality/value – To the authors' knowledge, the paper is the first empirical study of bribery in subsidized credit markets.

Social capital and national innovation system: a cross-country analysis

2014 ◽  
Vol 21 (4) ◽  
pp. 453-475 ◽  
Author(s):  
Sepehr Ghazinoory ◽  
Ali Bitaab ◽  
Ardeshir Lohrasbi
Keyword(s):  
Social Capital ◽  
National Level ◽  
Innovation System ◽  
Negative Effects ◽  
Content Type ◽  
Research Findings ◽  
Different Dimensions ◽  
The Impact ◽  
Positive Effect

Purpose – In the last two decades, researchers have paid much attention to the role of cultural values on economic and social development. In particular, the crucial role of different aspects of culture on the development of innovation has been stressed in the literature. Consequently, it is vital to understand how social capital, as a core cultural value, affects the innovation process and the innovative performance at the national level. However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained. Thus, the purpose of this paper is to investigate the influence of four different dimensions of social capital (institutional and interpersonal, associational life and norms) on two of the main functions of national innovation system (NIS) (entrepreneurship and knowledge creation) based on over 50,000 observations in 34 countries. Design/methodology/approach – In this regard, national-level data from the World Values Survey database was employed to quantify social capital. Entrepreneurship is, in turn, assumed to consist of three sub-indexes and 14 indicators based on the Global Entrepreneurship Index. Knowledge creation is also measured through US Patent Office applications. Also, exploratory factor analysis and structural equation modeling approach were used to build the measurement model and investigate the impact that each factor of social capital had on entrepreneurship and knowledge application, respectively. Measurement and structural models were built and their reliability and validity were tested using various fit indices. Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions. Findings – Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions. Originality/value – However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained.

The role of entrepreneurial families in entrepreneurial ecosystems: the family social capital approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Claudia Benavides-Salazar ◽  
Cristina Iturrioz-Landart ◽  
Cristina Aragón-Amonarriz ◽  
Asunción Ibañez-Romero
Keyword(s):  
Social Capital ◽  
Design Methodology ◽  
Content Type ◽  
Entrepreneurial Ecosystems ◽  
Family Social Capital ◽  
The Family ◽  
Depth Interviews ◽  
Entrepreneurial Dynamics

Purpose This paper aims to investigate how entrepreneurial families (EFs) influence the development of entrepreneurial ecosystems (EEs) by using the family social capital (FSC) approach. Design/methodology/approach For this paper, the authors analyzed the Manizales EE as a case study. The authors used a variety of data collection procedures, including in-depth interviews with 26 entrepreneurs and mentors. Findings The authors established how EFs affect EE development, identifying how the FSC bridging mechanisms impact the EE’s social and cultural attributes, boosting entrepreneurial dynamics. Originality/value The results indicated the relevance of EFs’ embeddedness and the degree of the FSC institutionalization in promoting of entrepreneurship within the EEs.

The role of public libraries in the development of social capital in local communities – a theoretical study

2021 ◽  
Vol 42 (3) ◽  
pp. 184-196
Author(s):  
Maja Dorota Wojciechowska
Keyword(s):  
Social Capital ◽  
Social Engagement ◽  
Social Life ◽  
Public Libraries ◽  
Local Communities ◽  
Social Needs ◽  
Content Type ◽  
The Social ◽  
The Impact

PurposeSocial capital, understood as intangible community values available through a network of connections, is a factor in the development of societies and improving quality of life. It helps to remove economic inequalities and prevent poverty and social exclusion, stimulate social and regional development, civic attitudes and social engagement and build a civic society as well as local and regional identity. Many of these tasks may be implemented by libraries, which, apart from providing access to information, may also offer a number of services associated with social needs. The purpose of this paper is to present the roles and functions that libraries may serve in local communities in terms of assistance, integration and development based on classical social capital theories.Design/methodology/approachThe paper reviews the classical concepts of social capital in the context of libraries. It analyses the findings of Pierre-Félix Bourdieu, James Coleman, Francis Fukuyama, Robert Putnam, Nan Lin, Ronald Stuart Burt, Wayne Baker and Alejandro Portes. Based on their respective concepts, the paper analyses the role of the contemporary library in the social life of local communities. In particular, it focuses on the possible new functions that public libraries may serve.FindingsA critical review of the concept of social capital revealed certain dependencies between libraries and their neighbourhoods. With new services that respond to the actual social needs, libraries may serve as a keystone, namely they may integrate, animate and engage local communities. This, however, requires a certain approach to be adopted by the personnel and governing authorities as well as infrastructure and tangible resources.Originality/valueThe social engagement of libraries is usually described from the practical perspective (reports on the services provided) or in the context of research on the impact of respective projects on specific groups of users (research reports). A broader approach, based on original social theories, is rarely encountered. The paper draws on classical concepts of social capital and is a contribution to the discussion on possible uses of those concepts based on an analysis of the role of libraries in social life and in strengthening the social capital of local communities.

Social capital in the theory and research of LIS professionals in the light of the literature on the subject. Review of current knowledge

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maja Dorota Wojciechowska
Keyword(s):  
Social Capital ◽  
Current Knowledge ◽  
Future Research ◽  
Content Type ◽  
Individual Social Capital ◽  
Rural Libraries ◽  
The Subject ◽  
The Moment ◽  
The Impact

Purpose The purpose of the paper is to present the latest scholarly trends in the field of social capital in libraries, to review research concepts published by LIS professionals and to suggest further research possibilities in this area. Design/methodology/approach This paper presents a review and critical analysis of literature associated with research on social capital in libraries to highlight its importance for the development of LIS and its impact on the functioning of environments linked with various types of libraries. The goal of literature analysis was to determine the current condition of research on social capital in libraries. The main trends were identified and the need for further qualitative analyses, which are missing at the moment, was confirmed. Findings It was determined that, so far, LIS professionals have focussed mainly on the role of municipal libraries in developing social capital, the problem of building trust, especially in immigrant circles and the impact of libraries on promoting a civil society. Academic libraries, rural libraries, organisational capital in libraries and individual social capital of librarians were a much less frequent subject of research. The role of libraries in developing social capital in educational (primary and secondary education) and professional (non-university professionals) circles is practically non-existent in research, and it will require in-depth studies and analyses in the coming years. Originality/value This paper constitutes a synthetic review of the latest research concepts concerning social capital in libraries. It identifies the most important research trends and areas that so far have not been explored and suggests research methods to help LIS professionals design future research in this area more effectively.

Effect of social capital on agribusiness diversification intention in the emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Dang Lang ◽  
Abhishek Behl ◽  
Nguyen Trung Dong ◽  
Yama Temouri ◽  
Nguyen Hong Thu
Keyword(s):  
Social Capital ◽  
Global Economy ◽  
Structural Equation ◽  
Emerging Market ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Group Discussions ◽  
Content Type ◽  
Depth Interviews

PurposeCoronavirus disease 2019 (COVID-19) has seriously affected the global economy. How agribusinessmen are overcoming this crisis is being noticed in emerging markets. Using social capital to diversify agribusiness for getting more customers is a useful solution for the growth of agribusiness. However, there is a lack of evidence on the aggregate measurement scale of social capital and the influence of behavioral goals on the intention toward agribusiness diversification. Therefore, this study aims to develop an integrated measurement of social capital and investigate its effect on agribusiness diversification intention using the expanded theory of planned behavior (TPB).Design/methodology/approachA mixed-methods approach is used, including four in-depth interviews, three focus group discussions and two surveys. Structural equation modeling is applied to a sample of 484 respondents to test the proposed hypotheses.FindingsThe study shows the role of social capital in influencing the intention to diversify agribusiness under the premises of the resource-based view (RBV). The scale of social capital is also developed, which is the first integrated measurement of this asset. The findings contribute significantly to the existing knowledge of social capital, the TPB and diversifying agribusiness.Originality/valueThis is the first study to explore the comprehensive effect of the facets of social capital on behavioral intention through behavioral goals and determinants of the TPB under the premises of the RBV. The findings will help emerging economies, for example, Vietnam, where most farmers are family business owners or microscaled entrepreneurs in agriculture.

Impact of organizational citizenship behavior on job performance in Indian healthcare industries

2017 ◽  
Vol 66 (6) ◽  
pp. 780-796 ◽  
Author(s):  
Eeman Basu ◽  
Rabindra Kumar Pradhan ◽  
Hare Ram Tewari
Keyword(s):  
Social Capital ◽  
Job Performance ◽  
Organizational Citizenship ◽  
Organizational Citizenship Behavior ◽  
Superior Performance ◽  
Citizenship Behavior ◽  
Healthcare Organizations ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship between organizational citizenship behavior (OCB) and job performance. It also examines the mediating role of social capital in influencing the relationship between OCB and job performance. Design/methodology/approach The study explores the dynamic relationship among the variables of OCB and job performance and social capital. Data were collected from 501 respondents working in 15 healthcare organizations in Kolkata, India, through questionnaire survey. Likert-type rating scales of OCB, job performance and social capital with sound reliability and validity were used to carry out the survey. The data were analyzed using structural equation modeling. Findings The results of the present study show that OCB significantly predicts job performance in healthcare organizations. Social capital found to be a significant mediator between OCB and job performance. Research limitations/implications The findings of the study have a number of implications for organizations in acknowledging and leveraging social capital and encouraging OCB to facilitate superior performance of employees. The generalization of the findings of the study should be restricted to the healthcare organizations in Kolkata due to its own style of functioning, workforce and work environment. The role of demographic variables in influencing the outcome measures has not been considered for the present study. Further research on these aspects may reveal more interesting results with regard to the dynamics among organizational citizenship behavior, social capital and job performance. Practical implications Employee-friendly management practices should be adopted in organizations to facilitate the formation of network building and development of social capital which serves as an asset to organizations and creates competitive advantage. Originality/value The research findings enrich our understanding of voluntary social participation and citizenship behavior of employees for influencing performance at work. The study also provides useful and unique insight on the benefits of networking in healthcare organizations particularly helping employees to cope with emergency situations. The findings as well as methodology used in this study are original and unique.

The effects of social capital on knowledge heterogeneity

2019 ◽  
Vol 57 (5) ◽  
pp. 1237-1253 ◽  
Author(s):  
Fu-Sheng Tsai ◽  
I-Chieh Hsu
Keyword(s):  
Social Capital ◽  
New Product Development ◽  
New Product ◽  
Shared Vision ◽  
Three Dimensions ◽  
Content Type ◽  
Negative Impacts ◽  
The Relationship ◽  
Epistemological Dimension

Purpose The purpose of this paper is to examine the influences of social capital on knowledge heterogeneity in order to advance the understanding of the effects and to reconcile existing inconsistent findings. Design/methodology/approach Survey data collected from 105 new product development (NPD) projects were analyzed with regression-based methods. Findings The results indicated that trust, centralization and shared vision as the three social capital dimensions generally have negative impacts on the domain and presentation dimensions of knowledge heterogeneity. However, the three dimensions of social capital do not exhibit consistent influences on the tacitness heterogeneity (i.e. an epistemological dimension of knowledge heterogeneity). Research limitations/implications More research is needed to explore the role of social capital dimensions in developing a range of knowledge attributes of NPD teams, among which knowledge heterogeneity is one. The various dimensions of knowledge an NPD team possesses should have performance implications and deserve future investigation. Originality/value The study is one of the first documented attempts to demonstrate contingencies in the relationship between social capital and knowledge heterogeneity. The effect of social capital on knowledge heterogeneity should be understood at the level of dimensions of the two respective constructs.

The role of social capital in augmenting strategic renewal of SMEs: does entrepreneurial orientation and organizational flexibility really matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samar Hayat Khan ◽  
Abdul Majid ◽  
Muhammad Yasir ◽  
Asad Javed ◽  
Hassan Ahmed Shah
Keyword(s):  
Social Capital ◽  
Entrepreneurial Orientation ◽  
Developing Economies ◽  
The Body ◽  
Cross Sectional ◽  
Organizational Flexibility ◽  
Content Type ◽  
Strategic Renewal ◽  
Organizational Social Capital

PurposeThe objective of this study is to evaluate the key issues that how social capital augments the initiation of strategic renewal through the mediating role of entrepreneurial orientation and the moderating role of organizational flexibility. In the context of Small and Medium Enterprises (SMEs) of developing economies, the study developed and tested the theoretical model of strategic renewal for analyzing its major outputs.Design/methodology/approachThis study utilized cross-sectional design and employ quantitative approach. The data were collected from the owner, managers and executive directors of pharmaceutical SMEs of Pakistan. The study used statistical analysis of correlation and regression for the analysis of data.FindingsThe study discovered that entrepreneurial orientation mediates the positive relationship of social capital and strategic renewal. Moreover, high organizational flexibility strengthens the association between social capital and strategic renewal of SMEs.Originality/valueThis research contributes to the body of knowledge by providing empirical evidence that how to thrive the mechanism of strategic renewal. The study further provides understanding of the effects of organizational social capital, entrepreneurial orientation and organizational flexibility on strategic renewal.

Does managerial capability always drive performance? Empirical examinations of small and medium firms (SMEs) in a developing economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Agyapong ◽  
Suzzie Owiredua Aidoo ◽  
Samuel Yaw Akomea
Keyword(s):  
Social Capital ◽  
Structural Equation ◽  
Equation Modeling ◽  
Competitive Intensity ◽  
Content Type ◽  
Important Relationship ◽  
Holistic Understanding ◽  
Sub Saharan ◽  
Indirect Relationship

PurposeThe paper sought to uncover the conditions under which managerial capability enhances performance while considering the role of social capital within the unique boundary conditions created by competitive intensity.Design/methodology/approachThe authors use multi-source data from 206 managers and owners of SMEs from a Sub-Saharan African nation – Ghana.FindingsUsing structural equation modeling (SEM) to analysis the data, the findings revealed that social capital serves as a mechanism through which managerial capability influences performance. Furthermore, the results indicate that competitive intensity does not significantly moderate this important indirect relationship. Implications: This study provides relevant knowledge for scholars, practitioners and policymakers on the role of managerial capability and how it may be harnessed in enhancing performance.Originality/valueThis paper provides a holistic understanding of the capability performance relationship in attempts at extending the literature by examining social capital as a mediator and competitive intensity as a contingent factor of this important relationship in a conditional indirect model.

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