Bailey, Warren; Huang, Wei; Yang, Zhishu - In: Journal of Financial and Quantitative Analysis 46 (2012) 06, pp. 1795-1830
We study a transitional economy where state-controlled banks make loan decisions based on noisy inside information on prospective borrowers, and may lend to avert unemployment and social instability. In China, poor financial performance and high managerial expenses increase the likelihood of...
