The dynamics of listed SMEs in China

Liu, J

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.

Citation

Liu, J. (2012). The dynamics of listed SMEs in China. International Journal of the Economics of Business, 19(3), 421-450. https://doi.org/10.1080/13571516.2012.715274

• Journal Article Type: Article
• Online Publication Date: Oct 24, 2012
• Publication Date: Oct 24, 2012
• Deposit Date: Oct 28, 2011
• Publicly Available Date: May 15, 2018
• Journal: International Journal of the Economics of Business
• Print ISSN: 1357-1516
• Publisher: Routledge
• Peer Reviewed: Peer Reviewed
• Volume: 19
• Issue: 3
• Pages: 421-450
• DOI: https://doi.org/10.1080/13571516.2012.715274
• Publisher URL: http://dx.doi.org/10.1080/13571516.2012.715274
• Related Public URLs: http://www.tandfonline.com/toc/cijb20/current