Title

The effects of foreign strategic investors on bank prudential behavior: Evidence from China.

SelectedWorks Author Profiles:

Wenshan Lin

Document Type

Article

Publication Date

2017

ISSN

1540-496X

Abstract

Using China’s data between 1995 and 2014, we employ the propensity score matching and difference in differences approaches to investigate the effects of foreign strategic investors (FSIs) on bank prudential behavior, and find the following results. First, lending behavior and reserve behavior become prudential after introducing FSIs. Second, FSIs assigning directors or managers could improve the bank’s prudence. Third, the effects of FSIs on bank prudence are weaker in state-owned banks than in non-state-owned banks. Finally, further analyses show that FSIs may reduce bank risk through improving prudential behavior, that is, prudential behavior is a mediator between FSIs and bank risk.

Comments

Citation only. Full-text article is available through licensed access provided by the publisher. Members of the USF System may access the full-text of the article through the authenticated link provided.

Publisher

Routledge

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.