Incentive contracts and bank performance

Hongbin Li (), Scott Rozelle and Li-An Zhou

The Economics of Transition, 2007, vol. 15, issue 1, pages 109-124

Abstract: This paper, using unique survey data from the banking industry in rural China, investigates the effect of incentive contracts on performance. In the context of China's economic transition, we find that the incentive contracts have a positive effect on the bank manager's performance in deposit taking and non-performing loan reduction. This finding is robust when we control for the endogeneity of incentive contracts. Our empirical results present evidence on the positive effects of incentive-based banking reforms in rural China. Copyright (c) 2007 The Authors Journal compilation (c) 2007 The European Bank for Reconstruction and Development.

Date: 2007

Downloads: (external link)
http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0351.2007.00273.x link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0967-0750

Access Statistics for this article

The Economics of Transition is edited by Philippe Aghion and Wendy Carlin

More articles in The Economics of Transition from The European Bank for Reconstruction and Development
Series data maintained by Christopher F. Baum ().