USF St. Petersburg campus Faculty Publications
The effects of bank privatization on performance and prudential behavior in China: does state ownership matter?
Document Type
Article
Publication Date
2017
ISSN
1608-1625
Abstract
Using China’s data from 2000 to 2013, we examine the effects of bank privatization on performance and prudential behavior, and find the following results. First, bank operating efficiency, credit risk, and prudential behavior have improved after introducing foreign strategic investors (FSIs). However, these effects are diminished as time passes. Second, going public increases bank profitability, operating efficiency, and prudential behavior, and reduces credit risk, which are also reversed as time passes. Finally, the effects of introducing FSIs on credit risk and prudential behavior are weaker for state-owned banks than for other banks, while the opposite is true for going public.
Publisher
Routledge
Recommended Citation
Cheng, M., Zhao, H. & Lin, J.W. (2017). The effects of bank privatization on performance and prudential behavior in China: does state ownership matter? Asia-Pacific Journal of Accounting and Economics, 24, 387-406, doi: 10.1080/16081625.2016.1187071
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Comments
Citation only. Full-text article is available through licensed access provided by the publisher. Members of the USF System may access the full-text of the article through the authenticated link provided.