Banks and Enterprise Privatization in China
Loren Brandt (),
Hongbin Li () and
Joanne Roberts ()
The Journal of Law, Economics, and Organization, 2005, vol. 21, issue 2, 524-546
Drawing on a unique dataset we collected in 1998 and 2000, this article examines the determinants of privatization of township and village enterprises in China. Our theoretical model explicitly considers the role of banks in determining privatization. We find that improved human capital and incentives of bank managers as well as deteriorating bank liquidity lead to privatization. We also analyze the conditions under which shutdown might be preferred to privatization as a method to divest of government-owned firms. We find empirical evidence that is consistent with our model's predictions. Copyright 2005, Oxford University Press.
References: Add references at CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:oup:jleorg:v:21:y:2005:i:2:p:524-546
Ordering information: This journal article can be ordered from
Access Statistics for this article
The Journal of Law, Economics, and Organization is currently edited by Andrea Prat
More articles in The Journal of Law, Economics, and Organization from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().