Cargando…

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 lend mo...

Descripción completa

Detalles Bibliográficos
Autores principales: Liu, Jie, Xu, Limei, Zhang, Qiaoyun
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9612559/
https://www.ncbi.nlm.nih.gov/pubmed/36301955
http://dx.doi.org/10.1371/journal.pone.0276877
_version_ 1784819799714430976
author Liu, Jie
Xu, Limei
Zhang, Qiaoyun
author_facet Liu, Jie
Xu, Limei
Zhang, Qiaoyun
author_sort Liu, Jie
collection PubMed
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.
format Online
Article
Text
id pubmed-9612559
institution National Center for Biotechnology Information
language English
publishDate 2022
publisher Public Library of Science
record_format MEDLINE/PubMed
spelling pubmed-96125592022-10-28 The influence of the largest private shareholder on bank loans: Evidence from China Liu, Jie Xu, Limei Zhang, Qiaoyun PLoS One Research Article 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. Public Library of Science 2022-10-27 /pmc/articles/PMC9612559/ /pubmed/36301955 http://dx.doi.org/10.1371/journal.pone.0276877 Text en © 2022 Liu et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Liu, Jie
Xu, Limei
Zhang, Qiaoyun
The influence of the largest private shareholder on bank loans: Evidence from China
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
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9612559/
https://www.ncbi.nlm.nih.gov/pubmed/36301955
http://dx.doi.org/10.1371/journal.pone.0276877
work_keys_str_mv AT liujie theinfluenceofthelargestprivateshareholderonbankloansevidencefromchina
AT xulimei theinfluenceofthelargestprivateshareholderonbankloansevidencefromchina
AT zhangqiaoyun theinfluenceofthelargestprivateshareholderonbankloansevidencefromchina
AT liujie influenceofthelargestprivateshareholderonbankloansevidencefromchina
AT xulimei influenceofthelargestprivateshareholderonbankloansevidencefromchina
AT zhangqiaoyun influenceofthelargestprivateshareholderonbankloansevidencefromchina