Bank firm relationship and firm performance under a state-owned bank system: evidence from China

@inproceedings{Cao2017BankFR,
  title={Bank firm relationship and firm performance under a state-owned bank system: evidence from China},
  author={Weimin Cao and Jianguo Chen and Jing Chi},
  year={2017}
}
This study investigates how close bank-firm relationship affects Chinese listed firms’ market performance from 1999 to 2004. We find that firms with stronger bank-firm relationship exhibit lower market value and there is a systematic lending bias towards firms with dominant state ownership. In addition, firms with worse market performance borrow more and firms within strategic industries borrow less due to the alternative financial support from the government. Overall, our results indicate that… CONTINUE READING

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We wish to acknowledge data support from China Shenzhen GTA (Guo Tai An) Information Technology Co., Ltd. All errors are our responsibility

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