Do different forms of government ownership matter for bank capital behavior? Evidence from China

Article


Jiang, C., Liu, H. and Molyneux, P. 2019. Do different forms of government ownership matter for bank capital behavior? Evidence from China. Journal of Financial Stability. 40, pp. 38-49. https://doi.org/10.1016/j.jfs.2018.11.005
TypeArticle
TitleDo different forms of government ownership matter for bank capital behavior? Evidence from China
AuthorsJiang, C., Liu, H. and Molyneux, P.
Abstract

This study attempts to reconcile the conflicting theoretical predictions regarding how government ownership affects bank capital behaviour. Using a unique Chinese bank dataset over 2006-2015 we find that government-owned banks have higher target capital ratios and adjust these ratios faster compared to private banks, supporting the ‘development/political’ view of the government’s role in banking. This effect is stronger for local government-owned and state enterprise-owned banks than for central government-owned banks. We also find that undercapitalized government-owned banks increase equity while undercapitalized foreign banks contract assets and liabilities as their respective main strategy to adjust their capital ratios.

PublisherElsevier
JournalJournal of Financial Stability
ISSN1572-3089
Publication dates
Online28 Nov 2018
Print01 Feb 2019
Publication process dates
Deposited10 Dec 2018
Accepted27 Nov 2018
Output statusPublished
Accepted author manuscript
License
Digital Object Identifier (DOI)https://doi.org/10.1016/j.jfs.2018.11.005
LanguageEnglish
Permalink -

https://repository.mdx.ac.uk/item/8810w

  • 31
    total views
  • 7
    total downloads
  • 0
    views this month
  • 0
    downloads this month

Export as

Related outputs

Public policy and financial stability: The impact of PCA and TARP on U.S. bank non-performing loans
Jiang, C., Kanas, A. and Molyneux, P. 2018. Public policy and financial stability: The impact of PCA and TARP on U.S. bank non-performing loans. International Journal of Finance & Economics. 23 (4), pp. 376-392. https://doi.org/10.1002/ijfe.1622
Investment efficiency of the new energy industry in China
Zeng, S., Jiang, C., Ma, C. and Su, B. 2018. Investment efficiency of the new energy industry in China. Energy Economics. 70, pp. 536-544. https://doi.org/10.1016/j.eneco.2017.12.023
Border is better than distance? Contagious corruption in one belt one road economies
Feng, G., Sui, B., Dong, M., Jiang, C. and Chang, C. 2018. Border is better than distance? Contagious corruption in one belt one road economies. Quality & Quantity: International Journal of Methodology. 52 (4), pp. 1909-1928. https://doi.org/10.1007/s11135-017-0579-3
Chinese banking reform: from the pre-WTO to financial crisis and beyond
Jiang, C. and Yao, S. 2017. Chinese banking reform: from the pre-WTO to financial crisis and beyond. UK Palgrave Macmillan.
Market concentration, risk-taking, and bank performance: evidence from emerging economies
Zhang, J., Jiang, C., Qu, B. and Wang, P. 2013. Market concentration, risk-taking, and bank performance: evidence from emerging economies. International Review of Financial Analysis. 30, pp. 149-157. https://doi.org/10.1016/j.irfa.2013.07.016
What determine firms’ capital structure in China?
Chen, J., Jiang, C. and Lin, Y. 2014. What determine firms’ capital structure in China? Managerial Finance. 40 (10), pp. 1024-1039. https://doi.org/10.1108/MF-06-2013-0163
The effects of governance changes on bank efficiency in China: a stochastic distance function approach
Jiang, C., Yao, S. and Zhang, Z. 2009. The effects of governance changes on bank efficiency in China: a stochastic distance function approach. China Economic Review. 20 (4), pp. 717-731. https://doi.org/10.1016/j.chieco.2009.05.005
Bank ownership, privatization, and performance: evidence from a transition country
Jiang, C., Yao, S. and Feng, G. 2013. Bank ownership, privatization, and performance: evidence from a transition country. Journal of Banking and Finance. 37 (9), pp. 3364-3372. https://doi.org/10.1016/j.jbankfin.2013.05.009
Corporate governance and bank performance in China
Jiang, C., Feng, G. and Zhang, J. 2012. Corporate governance and bank performance in China. Journal of Chinese Economic and Business Studies. 10 (2), pp. 131-146. https://doi.org/10.1080/14765284.2012.673779
Analysis of bank efficiency of Chinese commercial banks and the effects of institutional changes on bank efficiency.
Jiang, C. 2008. Analysis of bank efficiency of Chinese commercial banks and the effects of institutional changes on bank efficiency. PhD thesis Middlesex University Business School
WTO challenges and efficiency of Chinese Banks.
Jiang, C., Yao, S., Feng, G. and Willenbockel, D. 2006. WTO challenges and efficiency of Chinese Banks. in: Yao, S. and Chen, J. (ed.) Globalization, Competition and Growth in China Routledge. pp. 57-76
WTO challenges and efficiency of Chinese Banks
Jiang, C., Yao, S., Feng, G. and Willenbockel, D. 2005. WTO challenges and efficiency of Chinese Banks. Applied Economics. 39 (5), pp. 629-643. https://doi.org/10.1080/00036840500447799