Banking Reform and Efficiency in China: 1995-2008

Employing the one-step stochastic frontier analysis (SFA) approach, this paper examines bank efficiency in China, paying special attention to the ownership, selection effect and dynamic effects of governance changes on bank performance. Bank efficiency has improved over the data period 1995-2008. The estimated average cost and profit efficiencies are 74% and 63% respectively. Joint Stock Commercial Banks (JSCBs) and City Commercial Banks (CCBs) outperform State-owned Commercial Banks (SOCBs). The results suggest a strong selection effect for foreign investors. Foreign ownership participation has a negative effect on profit efficiency in the long-term while initial public offerings (IPOs) improve bank profitability in the short-term. The research findings have important implications on future bank reforms in China in the aftermath of the current financial crisis.SFA, Efficiency, Banking, China

The effects of governance changes on bank efficiency in China: A stochastic distance function approach

China has accelerated and deepened bank reform since it joined the WTO in 2001. Employing a stochastic distance function, this paper investigates the technical efficiency of banks and examines the static, selection and dynamic effects of governance changes on bank efficiency in China for the period 1995-2005. Our results show that bank efficiency has been improved and state-owned banks still perform poorly except for a noticeable improvement from 2003. Strong selection effects are found from both the foreign acquisition and going-public reform strategies. Foreign acquisition may benefit bank efficiency in the long run, but going-public appears to have just some short run effects. One obvious policy implication is that foreign competition is beneficial to China 's on-going bank reform, and going-public is just a means to allow effective foreign competition.Distance function, Efficiency, Banking, China

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

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

The spatial heterogeneity and time-varying nature of FDI determinants : evidence from China

Funding This research is financially supported by the Natural Science Foundation of China (72173036) and the Natural Science Foundation of Hainan Province (721RC515). The authors are solely responsible for any errors or omissions herein.Peer reviewedPublisher PD

Public policy and financial stability : The impact of PCA and TARP on U.S. bank non-performing loans

Peer reviewedPostprin

What explains Alibaba’s miraculous IPO success on the New York Stock Exchange?

Funding This work was supported by the Natural Science Foundation of China under Grant 72173036; the Natural Science Foundation of Hainan Province under Grant 721RC515. The authors are solely responsible for any error or omission herein. Funding Information: This work was supported by the National Natural Science Foundation of China under Grant 72173036; the Natural Science Foundation of Hainan Province under Grant 721RC515. The authors are solely responsible for any error or omission herein. Publisher Copyright: © 2022 Informa UK Limited, trading as Taylor & Francis Group.Peer reviewe

Is cloud computing the digital solution to the future of banking?

Acknowledgment: We express our thanks to the editors and anonymous referees for their constructive comments and suggestions, which have helped us significantly improve this paper. We have benefitted from discussions with colleagues and participants of different seminars/workshops in China and the UK. All remaining errors are our own. This research is financially supported by the Natural Science Foundation of China (72173036, 71973148) and the Chinese National Funding of Social Sciences (19CJY065).Peer reviewedPublisher PD

The Impact of High-Speed Railway on Urban Housing Prices in China : A Network Accessibility Perspective

This research is financially supported by the Natural Science Foundation of China (71973019, 71673033, 71973148), the Social Science Foundation of China (18ZDA005, 19ZDA082), Chongqing Social Science Planning Project (2017YBJJ024), and Fundamental Research Funds for the Central Universities (NO.2020CDJSK02PT26, NO.2019CDSKXYJG0037). The authors are solely responsible for any error or omission herein.Peer reviewedPostprin