Journal of Financial Stability Vol. 50 2020
Foreign Strategic Investors, State Ownership, and Non-interest Activities: Evidence from China
Abstract
This paper contributes to the literature on foreign strategic investors (FSIs) by examining the influence of FSIs on non-interest activities. Using data from China’s banks for 2001–2016, we find that FSI entry is associated with significantly increased non-interest activities, especially commission and fee activities, of Chinese banks. Furthermore, local banks with directors appointed by FSIs have increased non-interest activities. Moreover, in state-owned banks, the effects of FSIs and directors assigned by FSIs on non-interest activities are both weaker. We also find that non-interest activities have not significantly changed after the exit of FSIs. These empirical findings will be informative and relevant to both policymakers and practitioners.
- DOI
- 10.1016/j.jfs.2020.100779
- Volume
- 50
- Pages
- 100779
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref