Assessing Market Competition in the Chinese Banking Industry Based on a Conjectural Variation Model

2021 ◽  
Vol 29 (2) ◽  
pp. 73-98
Author(s):  
Xiangyi Zhou ◽  
Zheng Pei ◽  
Botao Qin
Keyword(s):  
Banking Industry ◽  
Market Competition ◽  
Conjectural Variation ◽  
Chinese Banking Industry ◽  
Chinese Banking ◽  
Variation Model

scholarly journals Competition, Innovation, Risk-Taking, and Profitability in the Chinese Banking Sector: An Empirical Analysis Based on Structural Equation Modeling

2016 ◽  
Vol 2016 ◽  
pp. 1-10 ◽  
Author(s):  
Ti Hu ◽  
Chi Xie
Keyword(s):  
Structural Equation Modeling ◽  
Risk Taking ◽  
Structural Equation ◽  
Banking Sector ◽  
Banking Industry ◽  
Market Competition ◽  
Equation Modeling ◽  
Chinese Banking Industry ◽  
New Perspective ◽  
Chinese Banking

We introduce a new perspective to systematically investigate the cause-and-effect relationships among competition, innovation, risk-taking, and profitability in the Chinese banking industry. Our hypotheses are tested by the structural equation modeling (SEM), and the empirical results show that (i) risk-taking is positively related to profitability; (ii) innovation positively affects both risk-taking and profitability, and the effect of innovation on profitability works both directly and indirectly; (iii) competition negatively affects risk-taking but positively affects both innovation and profitability, and the effects of competition on risk-taking and profitability work both directly and indirectly; (iv) there is a cascading relationship among market competition and bank innovation, risk-taking, and profitability.

scholarly journals Does competition only impact on insolvency risk? New evidence from the Chinese banking industry

2017 ◽  
Vol 13 (3) ◽  
pp. 332-354 ◽  
Author(s):  
Yong Tan ◽  
John Anchor
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Banking Industry ◽  
Liquidity Risk ◽  
Empirical Literature ◽  
Content Type ◽  
Insolvency Risk ◽  
Chinese Banking Industry ◽  
The Impact ◽  
Chinese Banking

Purpose The purpose of this paper is to investigate the impact of competition on credit risk, liquidity risk, capital risk and insolvency risk in the Chinese banking industry during the period 2003-2013. Design/methodology/approach This study uses a generalized method of moments system estimator to examine the impact of competition on risk. In particular, translog specifications are used to measure the competition and insolvency risk. Findings The results show that greater competition within each bank ownership type (state-owned commercial banks, joint-stock commercial banks and city commercial banks) leads to higher credit risk, higher liquidity risk, higher capital risk, but lower insolvency risk. Originality/value This paper is the first piece of research testing the impact of competition on different types of risk in banking industry and it further contributes to the empirical literature by using a more accurate competition indicator (efficiency-adjusted Lerner index) and a more precise insolvency risk indicator (stability inefficiency).

Privatization and optimal share release in the Chinese banking industry

2009 ◽  
Vol 26 (6) ◽  
pp. 1161-1171 ◽  
Author(s):  
Chien-Hsun Chen ◽  
Chao-Cheng Mai ◽  
Yu-Lin Liu ◽  
Shin-Ying Mai
Keyword(s):  
Banking Industry ◽  
Chinese Banking Industry ◽  
Chinese Banking
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