Abstract
This paper examines the effects of corporate governance on bank performance in China over the period 1995-2008. Bank performance has improved significantly and the mean profit efficiency level is estimated at 61 per cent. The results suggest that differences in corporate governance have significant impacts on bank performance: banks with majority foreign ownership are most profitable while banks with majority state ownership are most unprofitable. We find no evidence that foreign minority ownership in domestic banks improves performance. Banks with more dispersed ownership are found to be more profit efficient.
Original language | English |
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Pages (from-to) | 131-146 |
Number of pages | 16 |
Journal | Journal of Chinese Economic and Business Studies |
Volume | 10 |
Issue number | 2 |
Early online date | 19 Apr 2012 |
DOIs | |
Publication status | Published - 2012 |
Keywords
- SFA
- Chinese Banking
- Corporate governance.