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Macau Periodical Index (澳門期刊論文索引)
- Author
- Zhao, Shiyong
- Title
- The effects of ownership and size on profitability of Chinese listed banks: Evidence over 1998-2010
- Journal Name
- 澳門科技大學學報
- Pub. Info
- Dec. 2013, Vol.7, No.2, pp. 33-43
- Link
- http://lib.must.edu.mo/sites/default/files/assets/images/Duu/must_journal_201302.pdf
- Keyword
- Bank size；Listed banks；Ownership structure；Profitability
- Abstract
- Abstract : This paper attempts to examine the effects of ownership and size on profitability of Chinese listed banks. Based on an unbalanced bank-level panel data set consisting of 16 listed banks in China over 1998-2010 and regressed with fixed effect models, we find that ownership structure does not have an economically significant effect on bank profitability, while asset size has a statistically and economically significant and positive effect on bank profitability. These effects stem from the fact that private investors are still not allowed to open banks in China. The significant size effect of China's banking sector explains why almost all banks want to grow larger,serve large customers and finance large government infrastructure projects. To let banks serve small and medium-sized enterprises (SMEs) and rural areas, the government should reduce, if not break, the State sector's banking monopoly. Paragraph Headings: 1. Introduction 2. Data and methodology 2.1. The data and variables 2.2. The model and methodology 3. Regression and explanation 4. Conclusion Tables: 1. Basic Information on the sixteen listed commercial banks in China, 2010 2. Variables: name, definitions, and descriptive statistics, 1998-2010 3. Regression results: determinants of profitability of Chinese listed banks