What causes Chinese listed firms to switch bank loan provider? Evidence from a survival analysis

Jiayi Huang, Kent Matthews and Peng Zhou

Emerging Markets Review, 2020, vol. 43, issue C

Abstract: This paper analyses the duration of firm-bank relationships and examines what drives firms in China to change from one bank loan provider to another. Matched data of firm-loan-duration to bank provides a unique panel data set of relationship between China's listed firms and their lending banks consisting of 2102 firms listed on both the Shanghai Stock Exchange and Shenzhen Stock Exchange in the period of 1996–2016. The Cox proportional hazard model is used to allow for a semiparametric hazard function after parametrically controlling for firm-specific financial factors, industry factors, ownership characteristics, internal management changes, and external macroeconomic changes. In addition, we explore the impact of the 2008 financial crisis, bank-financial and ownership characteristics. The main finding of this study is that in an environment of growing commercialisation of relationships the firm-bank relationship between state-owned enterprises (SOEs) and state-owned banks (SOBs) in China remains super-stable. However, a change in the CEO of a firm even of a SOE increases the probability of the loan-provider being changed.

Keywords: Firm-bank switch; China; Survival analysis; Hazard function (search for similar items in EconPapers)
JEL-codes: D22 G21 G41 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1566014119301104
Full text for ScienceDirect subscribers only

Related works:
Working Paper: What Causes Chinese Listed Firms To Switch Bank Loan Provider? Evidence From A Survival Analysis (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:43:y:2020:i:c:s1566014119301104

DOI: 10.1016/j.ememar.2020.100678

Access Statistics for this article

Emerging Markets Review is currently edited by Jonathan A. Batten

More articles in Emerging Markets Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().