Can foreign banks compete in China?

Avkiran, Necmi K., Zhu, Yushu, Tripe, David W. L. and Walsh, Kathleen (2015) Can foreign banks compete in China?. Accounting and Finance, . doi:10.1111/acfi.12188


Author Avkiran, Necmi K.
Zhu, Yushu
Tripe, David W. L.
Walsh, Kathleen
Title Can foreign banks compete in China?
Journal name Accounting and Finance   Check publisher's open access policy
ISSN 0810-5391
1467-629X
Publication date 2015-12-21
Sub-type Article (original research)
DOI 10.1111/acfi.12188
Open Access Status Not Open Access
Total pages 20
Place of publication Richmond, VIC, Australia
Publisher Wiley-Blackwell Publishing Asia
Collection year 2016
Language eng
Abstract Foreign banks in China have faced strict regulatory requirements that were not imposed on domestic banks and as such they have performed poorly in profitability rankings. Recent changes in the Chinese regulatory requirements prompt us to consider whether foreign banks are now on an equal footing with the Chinese domestic banks. Using Cobb–Douglas stochastic frontier analysis with total income as the dependent variable, we find no significant performance difference between foreign and domestic banks. However, robustness testing using the individual components of total income as dependent variables reveals that foreign banks need to improve efficiency of their income generation.
Keyword Efficiency
Foreign vs. domestic Chinese banks
Profitability
Ranking
Stochastic frontier analysis
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ
Additional Notes Article first published online 21 December 2015

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2016 Collection
UQ Business School Publications
 
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Created: Fri, 29 Jan 2016, 13:41:40 EST by Karen Morgan on behalf of UQ Business School