The influence of the largest private shareholder on bank loans: Evidence from China.
We point out that the largest private shareholders can use their information advantage of the industry to influence banks' industry lending behavior. Using a sample of Chinese city commercial banks, we find that increasing of ownership stake of the largest private shareholders leads banks to le...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Public Library of Science (PLoS)
2022-01-01
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| Series: | PLoS ONE |
| Online Access: | https://doi.org/10.1371/journal.pone.0276877 |
| _version_ | 1798044783375024128 |
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| author | Jie Liu Limei Xu Qiaoyun Zhang |
| author_facet | Jie Liu Limei Xu Qiaoyun Zhang |
| author_sort | Jie Liu |
| collection | DOAJ |
| description | We point out that the largest private shareholders can use their information advantage of the industry to influence banks' industry lending behavior. Using a sample of Chinese city commercial banks, we find that increasing of ownership stake of the largest private shareholders leads banks to lend more to their industries. Interestingly, the largest state-owned shareholders do not have this effect. More importantly, we confirmed the channel of the information advantage by analyzing the bank's industry NPL ratio and the listed company's maximum loan amount in the bank. Of course, the effect of the largest private shareholders is achieved by intervening in board decisions. In addition, the ownership structure can influence this effect. |
| first_indexed | 2024-04-11T23:09:52Z |
| format | Article |
| id | doaj.art-6813f4afd08746d8ba5b3fecc393e046 |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-04-11T23:09:52Z |
| publishDate | 2022-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-6813f4afd08746d8ba5b3fecc393e0462022-12-22T03:57:53ZengPublic Library of Science (PLoS)PLoS ONE1932-62032022-01-011710e027687710.1371/journal.pone.0276877The influence of the largest private shareholder on bank loans: Evidence from China.Jie LiuLimei XuQiaoyun ZhangWe point out that the largest private shareholders can use their information advantage of the industry to influence banks' industry lending behavior. Using a sample of Chinese city commercial banks, we find that increasing of ownership stake of the largest private shareholders leads banks to lend more to their industries. Interestingly, the largest state-owned shareholders do not have this effect. More importantly, we confirmed the channel of the information advantage by analyzing the bank's industry NPL ratio and the listed company's maximum loan amount in the bank. Of course, the effect of the largest private shareholders is achieved by intervening in board decisions. In addition, the ownership structure can influence this effect.https://doi.org/10.1371/journal.pone.0276877 |
| spellingShingle | Jie Liu Limei Xu Qiaoyun Zhang The influence of the largest private shareholder on bank loans: Evidence from China. PLoS ONE |
| title | The influence of the largest private shareholder on bank loans: Evidence from China. |
| title_full | The influence of the largest private shareholder on bank loans: Evidence from China. |
| title_fullStr | The influence of the largest private shareholder on bank loans: Evidence from China. |
| title_full_unstemmed | The influence of the largest private shareholder on bank loans: Evidence from China. |
| title_short | The influence of the largest private shareholder on bank loans: Evidence from China. |
| title_sort | influence of the largest private shareholder on bank loans evidence from china |
| url | https://doi.org/10.1371/journal.pone.0276877 |
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