Please use this identifier to cite or link to this item: https://doi.org/10.1016/j.jbankfin.2011.07.012
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dc.titleBank discrimination, holding bank ownership, and economic consequences: Evidence from China
dc.contributor.authorLu, Z.
dc.contributor.authorZhu, J.
dc.contributor.authorZhang, W.
dc.date.accessioned2013-10-09T02:33:43Z
dc.date.available2013-10-09T02:33:43Z
dc.date.issued2012
dc.identifier.citationLu, Z., Zhu, J., Zhang, W. (2012). Bank discrimination, holding bank ownership, and economic consequences: Evidence from China. Journal of Banking and Finance 36 (2) : 341-354. ScholarBank@NUS Repository. https://doi.org/10.1016/j.jbankfin.2011.07.012
dc.identifier.issn03784266
dc.identifier.urihttp://scholarbank.nus.edu.sg/handle/10635/43788
dc.description.abstractThis paper finds that compared with Chinese state-owned firms, non-state-owned firms have a greater propensity to hold significant ownership in commercial banks. These results are consistent with the notion that because non-state-owned firms are more likely to suffer bank discrimination for political reasons, they tend to address their financing disadvantages by building economic bonds with banks. We also find that among non-state-owned firms, those that hold significant bank ownership have lower interest expenses, and are less likely to increase cash holdings but more likely to obtain short-term loans when the government monetary policy is tight. These results suggest that the firms building economic bonds with banks can enjoy benefits such as lower financial expenses and better lending terms during difficult times. Finally, we find that non-state-owned firms with significant bank ownership have better operating performance. Overall, we find that firms can reduce discrimination through holding bank ownership. © 2011 Elsevier B.V.
dc.description.urihttp://libproxy1.nus.edu.sg/login?url=http://dx.doi.org/10.1016/j.jbankfin.2011.07.012
dc.sourceScopus
dc.subjectBank discrimination
dc.subjectBank loan
dc.subjectHolding bank ownership
dc.subjectPolitical connections
dc.subjectState-owned firms
dc.typeArticle
dc.contributor.departmentACCOUNTING
dc.description.doi10.1016/j.jbankfin.2011.07.012
dc.description.sourcetitleJournal of Banking and Finance
dc.description.volume36
dc.description.issue2
dc.description.page341-354
dc.description.codenJBFID
dc.identifier.isiut000300592600003
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