Available online at www.sciencedirect.com
Journal of Banking & finance xxx (2008) xxxxxx www.elsevier.com/locate/jbf
Bank self-possession reform and bank motion in China
Xiaochi Lin, Yi Zhang *
Guanghua School of Management, capital of Red China University, Beijing 100871, China Received 29 March 2006; received 16 November 2006
Abstract Using a panel of Chinese banks over the 19972004 period, we assess the e?ect of bank self-possession on carrying out. Speci?cally, we conduct a joint analysis of the static, selection, and ever-changing e?ects of (domestic) private, foreign and state possession. We ?nd that the Big quartet state-owned commercial banks are less(prenominal) pro?table, are less e?cient, and have worse asset quality than opposite types of banks except the policy banks (static e?ect). Further, the banks undergoing a foreign learning or public listing record better pre-event mental process (selection e?ect); however, we ?nd little performance change in either the short or the long term. Ã" 2007 Elsevier B.V. All rights reserved.
JEL classi?cation engrave: G21; G28 Keywords: State ownership; Private; Foreign; Bank performance; China
1.
Introduction The banking system in China is the largest and most multiplex among the countries presently in transition from central planning to market-based economies. In the last two decades, Chinese government-owned banks have undergone a funny privatization program that, distinct from the experience of other transition countries, has followed an incremental approach to change. The resulting changes in the ownership of Chinese banks raise classical questions. In particular, what role do domestic private ownership and foreign private ownership play in banks performance relative to state ownership? To address these questions we employ an econometric methodology that builds on the literature on the performance e?ects of various types of bank ownership in developing countries and lend oneself it to a unique data set on Chinese banks from...If you want to get a full essay, order it on our website: Ordercustompaper.com
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