The bank–firm relationship during economic transition: The impacts on bank performance in emerging economies |
| |
| Institution: | 1. Shandong Institute of Business and Technology, Yantai, China;2. University of Cincinnati, Cincinnati, OH, USA;3. Pusan National University, Busan, South Korea;1. Lund University and Centre for Financial Econometrics Deakin University, Australia;2. Centre for Financial Econometrics Deakin University, Australia;1. University of Massachusetts-Amherst, Amherst, MA 01003 USA;2. University of South Carolina, Columbia, SC 29208 USA;3. Wharton Financial Institutions Center, Philadelphia, PA 19104 USA;4. European Banking Center, Tilburg, the Netherlands;5. Federal Reserve Bank of Philadelphia, Philadelphia, PA 19106 USA;6. Lancaster University, Lancaster. LA1 4YW, UK |
| |
| Abstract: | We analyze the lending relationships between 1011 banks and 17,284 client borrowers across 11 emerging economies. We first demonstrate that a state-owned bank's risk appetite increases as its number of family business group-owned borrowing partners increases. Second, we show that a non-financial firm-owned bank's risk appetite also increases as its number of family business group-owned borrowing partners increases. Finally, we show that a bank is more likely to reduce its risk appetite and improve its operational cost efficiency as its foreign ownership ratio increases, regardless of the bank's lending partner. These findings suggest that, in the post-privatization period, the ownership structure changes of banks and/or borrowers affect the lending relationship and the bank's risk appetite and cost efficiency. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
