Regional Economic Development, Strategic Investors, and Efficiency in Chinese City Commercial Banks

32 Pages Posted: 6 Feb 2012

See all articles by Jianjun Sun

Jianjun Sun

College of Tourism, Hainan University

Nobuyoshi Yamori

Kobe University - Research Institute for Economics & Business Administration

Date Written: January 26, 2012

Abstract

We investigate the impact of strategic investors on bank efficiency in the context of regional economic development. The data on Chinese city commercial banks operating regionally are well-suited for the study. Findings suggest that strategic investors significantly increase efficiency in Chinese city commercial banks; the impact of strategic investors on the efficiency of Chinese city commercial banks is negatively correlated to the level of regional economic development. The negative correlation of the impact of strategic investors on Chinese city commercial banks’ efficiency with regional economic development may be explained by the mix of the local official promotion system and the city commercial banks’ governance structure.

Keywords: regional economic development, strategic investor, efficiency, city commercial banks, China

JEL Classification: G21, G32, O16

Suggested Citation

Sun, Jianjun and Yamori, Nobuyoshi, Regional Economic Development, Strategic Investors, and Efficiency in Chinese City Commercial Banks (January 26, 2012). Available at SSRN: https://ssrn.com/abstract=1998907 or http://dx.doi.org/10.2139/ssrn.1998907

Jianjun Sun (Contact Author)

College of Tourism, Hainan University ( email )

58 Renmin Ave. Meilan District
Haikou, Hainan 570228
China

Nobuyoshi Yamori

Kobe University - Research Institute for Economics & Business Administration ( email )

2-1, Rokkodai cho
Nada-ku
Kobe, 657-8501
Japan

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