Firth, Michael; Lin, Chen; Liu, Ping; Wong, Sonia M.L. - In: Journal of Banking & Finance 33 (2009) 6, pp. 1144-1155
This study examines how the Chinese state-owned banks allocate loans to private firms. We find that the banks extend loans to financially healthier and better-governed firms, which implies that the banks use commercial judgments in this segment of the market. We also find that having the state...