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Ownership concentration and bank profitability in China

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  • Huang, Qiubin

Abstract

Ownership concentration is an important mechanism of corporate governance, but its effect on corporate performance is ambiguous. Based on a sample of Chinese listed banks, we find that ownership concentration is positively associated with bank profitability during the 2007–2018 period, and the association is negatively moderated by bank size. An important policy implication is that banks may build a concentrated ownership structure to enhance their profitability.

Suggested Citation

  • Huang, Qiubin, 2020. "Ownership concentration and bank profitability in China," Economics Letters, Elsevier, vol. 196(C).
    • Handle: RePEc:eee:ecolet:v:196:y:2020:i:c:s0165176520303190
    DOI: 10.1016/j.econlet.2020.109525
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    References listed on IDEAS

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    Cited by:

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    2. Vincenzo Scafarto & Tamanna Dalwai & Federica Ricci & Gaetano della Corte, 2023. "Digitalization and Firm Financial Performance in Healthcare: The Mediating Role of Intellectual Capital Efficiency," Sustainability, MDPI, vol. 15(5), pages 1-16, February.
    3. Ozili, Peterson, 2021. "Bank profitability determinants: comparing the United States, Nigeria and South Africa," MPRA Paper 105638, University Library of Munich, Germany.

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    More about this item

    Keywords

    Ownership concentration; Bank profitability; Bank size;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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