The Influence Of Social Capital On Enterprise Investment And Financing

With the rapid development of China's economy and the deepening marketization degree,the barriers to entry into capital markets for emerging companies is lower and lower,which inevitably leads to the competition between the enterprises in the capital market.Only by increasing their strength can enterprises stand invincible.In addition to human capital and material capital,social capital is becoming more and more important in the development of enterprises.In this new situation,the research on enterprise social capital is becoming richer and richer.The initial research on social capital is based on individuals and only in the field of sociology.,But since the 1990 s,the domestic and foreign scholars began to study the social capital of enterprise level and regional level from the perspective of management to explore the impact of social capital on a region's economic performance or on the performance of an enterprise.A large number of scholars through the empirical study findings that enterprise social capital is an important intangible assets,which can obtain scarce resources for the enterprise,enhance core competitiveness of enterprises and improve the enterprise's business performance.Previous studies have shown that enterprises can improve their business performance by continuously building social capital of external social network,which is beneficial for enterprises to acquire resources and achieve their goals.As a result,more and more enterprises are striving to build their own social capital network,thus enhancing their competitiveness.This paper takes GREE and CHANGHONG as examples to study the impact of social capital on enterprise investment and financing on regional level,enterprise level and senior management level.Firstly,this paper reviews the concepts and theories of social capital,the function of social capital,and the domestic and foreign literature on the impact of social capital on investment and financing.Secondly,this paper takes GREE and CHANGHONG as examples to construct measures of social capital of regions,enterprises and senior executives,and to measure the social capital of GREE electric appliances and CHANGHONG.Then,the influence of social capital on the financing and investment of GREE and CHANGHONG is analyzed.Finally,through the case analysis,we conclude that social capital has important influence on the financing and investment of the company.This paper is divided into eight chapters.The first chapter mainly focuses on the research background and research significance,the ideas and methods of the article.The second chapter is literature review,which is divided into the concept of social capital,function and influence on financing and investment behavior.The third chapter introduces the basic situation of GREE electric and CHANGHONG.The fourth chapter measures the social capital of GREE and CHANGHONG;The fifth chapter analyzes the impact of social capital on short-term financing and long-term financing of enterprises.The sixth chapter analyzes the influence of social capital on enterprises' direct investment and indirect investment.The seventh chapter is the effect of social capital on investment and financing efficiency.The eighth chapter mainly analyzes the results of the case analysis and concludes the final conclusion and the deficiency of the study.