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Journal of Banking & Finance Vol. 33 No. 1 2009

Bank ownership reform and bank performance in China

Xiaochi Lin; Yi Zhang

Peking University

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.

DOI
10.1016/j.jbankfin.2006.11.022
Volume
33
Issue
1
Pages
20-29
Language
en
Sources
crossref openalex bibtex:phds-export.bib

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