Does the shareholding network affect bank's risk-taking behavior? An exploratory study on Chinese commercial banks

Bing Li, Changhong Li and Li Wang

Finance Research Letters, 2019, vol. 31, issue C

Abstract: The shareholding network provides a new paradigm to describe the relations between banks and their large shareholders. This shareholding network can affect bank performance where social capital embedded in it can be explained as the functioning mechanism and can be quantitatively measured by centrality metrics in network analysis. Specifically, this paper attempts to examine if the shareholding network has impact on banks’ risk-taking behavior in the context of the Chinese commercial banks. Our results show that the degree centralities in the BS Net and BB Net reflect the two-sided effects on banks’ risk-taking behavior.

Keywords: Shareholding network; Bank performance; Social capital; Risk-taking behavior (search for similar items in EconPapers)
JEL-codes: G21 G32 L14 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:31:y:2019:i:c:s154461231830789x

DOI: 10.1016/j.frl.2018.11.019

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