Does bank competition alleviate financing constraints in China? Further evidence from listed firms

0504956 - NHÚ 2020 RIV US eng J - Článek v odborném periodiku
Zhang, Z. - Zhang, D. - Brada, Josef C. - Kutan, A. M.
Does bank competition alleviate financing constraints in China? Further evidence from listed firms.
Emerging Markets Finance and Trade. Roč. 55, č. 9 (2019), s. 2124-2145. ISSN 1540-496X. E-ISSN 1558-0938
Institucionální podpora: RVO:67985998
Klíčová slova: bank competition * bank ownership * financing constraint
Obor OECD: Applied Economics, Econometrics
Impakt faktor: 1.214, rok: 2019
Způsob publikování: Omezený přístup
http://dx.doi.org/10.1080/1540496X.2018.1564905

This article studies the impact of structural changes in China’s banking sector on the financial constraints on Chinese listed companies’ ability to finance their investments. Using information on the location of bank branches of all Chinese banks, we find that growing competition among banks reduces financing constraints on listed firms. We also show that the emergence of joint-stock commercial banks and regional commercial banks has played a major role in alleviating financing constraints on enterprises, partially due to the weakening of the monopolistic position of state-owned commercial banks. Our findings are based on an analysis of the investment behavior of Chinese listed companies over the period 2000–2015. The results lend support to policies that would further relax regulations on entry into the banking sector.
Trvalý link: http://hdl.handle.net/11104/0296486