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The evolution of China’s banking system: bank loan announcements 1996–2009
Author(s) -
Gan Christopher,
Zhang Yuan,
Li Zhaohua,
Cohen David A.
Publication year - 2014
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/j.1467-629x.2012.00493.x
Subject(s) - loan , financial system , business , china , chinese financial system , sample (material) , participation loan , cross collateralization , bridge loan , non conforming loan , non performing loan , economics , finance , chemistry , chromatography , political science , law
This study investigates China’s evolving banking systems from 1996 to 2009 by testing the market response to bank loan announcements in the China. The results show a significant negative market response to bank loan announcements in the Chinese financial market for the sample period 1996–2004. However, after a series of reforms in the Chinese banking system, the significantly negative market response to bank loan announcements disappears for the sample period 2005–2009.