How ownership structure affects bank deposits and loan efficiencies: an empirical analysis of Chinese commercial banks

Xiaohong Liu, Jiasen Sun (), Feng Yang and Jie Wu
Additional contact information
Xiaohong Liu: University of Science and Technology of China
Jiasen Sun: Soochow University
Feng Yang: University of Science and Technology of China
Jie Wu: University of Science and Technology of China

Annals of Operations Research, 2020, vol. 290, issue 1, No 44, 983-1008

Abstract: Abstract This study explored how dramatic changes in ownership structure and operational technologies have influenced Chinese bank efficiency over the past decade. The study included an empirical analysis using 5 years (2011–2015) of operational data for 71 Chinese commercial banks. Two two-stage meta-frontier data envelopment analysis network models and multiple regression models were used to estimate and analyze impacts of variations in bank ownership structure. The main empirical results show that irrespective of deposits or loans efficiency, State-owned Banks (SOBs) have the highest technology and management levels. In contrast, City Commercial Banks should improve both technology and management levels, narrowing the gap with SOBs and Joint-stock Banks. The deposit efficiency of a bank was found to be mainly influenced by the nature of ownership (national shareholding ratio and the shareholding ratio of the domestic legal entities) and ownership concentration. The loan efficiency of a bank was mainly affected by the nature of ownership (the shareholding ratio of the foreign legal entities) and ownership liquidity.

Keywords: Bank; Efficiency; Ownership structure; Meta-frontier; DEA (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://link.springer.com/10.1007/s10479-018-3106-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
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:spr:annopr:v:290:y:2020:i:1:d:10.1007_s10479-018-3106-6

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-018-3106-6

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().