Ownership Concentration and Bank Profitability in China
9 Pages Posted: 20 Oct 2020
Date Written: August 20, 2020
Ownership concentration is an important mechanism of corporate governance, but its effect on corporate performance is ambiguous. Based on a sample of Chinese listed banks, we find that ownership concentration is positively associated with bank profitability during the 2007-2018 period, and the association is negatively moderated by bank size. An important policy implication is that banks may build a concentrated ownership structure to enhance their profitability.
Keywords: Ownership Concentration, Bank Profitability, Bank Size
JEL Classification: G21, G28, G32
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