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Bank ownership reform and bank performance in China

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  • Lin, Xiaochi
  • Zhang, Yi
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    Abstract

    Using a panel of Chinese banks over the 1997-2004 period, we assess the effect of bank ownership on performance. Specifically, we conduct a joint analysis of the static, selection, and dynamic effects of (domestic) private, foreign and state ownership. We find that the "Big Four" state-owned commercial banks are less profitable, are less efficient, and have worse asset quality than other types of banks except the "policy" banks (static effect). Further, the banks undergoing a foreign acquisition or public listing record better pre-event performance (selection effect); however, we find little performance change in either the short or the long term.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Banking & Finance.

    Volume (Year): 33 (2009)
    Issue (Month): 1 (January)
    Pages: 20-29

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    Handle: RePEc:eee:jbfina:v:33:y:2009:i:1:p:20-29

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    Web page: http://www.elsevier.com/locate/jbf

    Related research

    Keywords: State ownership Private Foreign Bank performance China;

    References

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