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Regional economic development, strategic investors, and efficiency of Chinese city commercial banks

Listed author(s):
  • Sun, Jianjun
  • Harimaya, Kozo
  • Yamori, Nobuyoshi

We investigate the effect of strategic investors on bank efficiency in the context of regional economic development. The data on Chinese city commercial banks operating regionally are well-suited for the study. Our findings suggest that strategic investors significantly increase efficiency in Chinese city commercial banks, while the effect of strategic investors on the efficiency of Chinese city commercial banks is negatively correlated to the level of regional economic development. The negative correlation of the effect of strategic investors on Chinese city commercial banks’ efficiency with regional economic development may be explained by the mix of local official promotion system and city commercial banks’ governance structure.

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File URL: http://www.sciencedirect.com/science/article/pii/S0378426613000228
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Article provided by Elsevier in its journal Journal of Banking & Finance.

Volume (Year): 37 (2013)
Issue (Month): 5 ()
Pages: 1602-1611

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Handle: RePEc:eee:jbfina:v:37:y:2013:i:5:p:1602-1611
DOI: 10.1016/j.jbankfin.2012.12.013
Contact details of provider: Web page: http://www.elsevier.com/locate/jbf

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