For transition economies, the virtues of financial development for economic growth are obvious; however, bank competition has dubious effects due to various firm characteristics. This study uses Chinese banking and firm data from 1998 to 2011 to examine how bank competition affects firm...

This article contributes to the literature by examining how the increase in bank competition impacts firms' innovation and how firm size and firm ownership impact the effect of bank competition. Using data which includes the banking sector and firm information across Chinese prefecture-level...