Government Ownership, Local Government Competition and City Commercial Banks Performance
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| Title | Government Ownership, Local Government Competition and City Commercial Banks Performance
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| Author | Liu Yang, Hong Zheng and Shen Yu |
| Organization | Southwestern University of Finance and Economics |
| Email | liuyangjr@swufe.edu.cn；xchill@163.com；shenyu2071@163.com |
| Key Words | Government Holding; Government Competition; City Commercial Banks; Performance |
| Abstract | In this paper we discuss the impact of government holding on city commercial banks’ performance through a special angle of government competition, and try to answer whether the local government will take different strategy in different competition situation and whether it will result in different ways. The results shows that when local governments appear much more competitively, like encouraging higher level of marketization, more expenditure on science and technology, or experiencing higher economic growth, government holding will exhibit positive influence on city banks, which is called helping hand. On the other hand, when local governments were less competitive and more stressful on developing local economy, governments ownership tend to be grabbing hand to city banks. Thus, compare to discussing the appropriate share percentage of government holding, local government competition and market construction would be more reasonable for governments ownership’s positive impact playing a role. |
| Serial Number | WP247 |
| Time | 2012-06-12 |
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