Ownership structure and bank performance: An emerging market perspective
Xiaoxiang Zhang and
MPRA Paper from University Library of Munich, Germany
This study investigates whether ownership type does matter for bank performance in an emerging market. By tracing the identity of top owners, I group large shareholder of China’s commercial banks into government, state owned enterprises (SOEs), domestic private investors and foreign investors. These distinct types of shareholders have multiple motivations and incentives, in turn, this will affect how they perform their control rights and monitor over the invested banks. The main findings regarding the impact of ownership structure on bank performance suggest that banks with high state shareholding tend to have poorer performance and low profitability, consistent with much of the literature. In addition, banks with higher domestic privately shareholders are generally operated more profitably. Furthermore, higher foreign ownership may negatively affect bank performance. Moreover, ownership type diversity is positively associated with bank performance, and banks with concentrated ownership are worse performing. My findings are robustness under the different measures of bank performance.
Keywords: Banks; Ownership structure; Corporate governance (search for similar items in EconPapers)
JEL-codes: G21 G28 G32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-cna and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/80653/1/MPRA_paper_80653.pdf original version (application/pdf)
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:pra:mprapa:80653
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().