Ownership and nonperforming loans: Evidence from Taiwan's banks

Jin-Li Hu, Yang Li, Yung Ho Chiu

研究成果: Article同行評審

123 引文 斯高帕斯(Scopus)

摘要

We first derive a theoretical model to predict that the relation between nonperforming loan ratios and government shareholdings can be downward- sloping, upward-sloping, U-shaped, and inversely U-shaped. An increase in the government's shareholding facilitates political lobbying. On the other hand, private shareholding induces more nonperforming loans (NPLs) to be manipulated by corrupt private owners. We adopt a panel data set of forty Taiwanese commercial banks during 1996-99 for empirical analysis. The results show that the rate of NPLs decreased as the ratio of government shareholding in a bank rose (up to 63.51 percent), while the rate thereafter increased. Bank size was negatively related to the rate of NPLs. Rates of NPLs are shown to have steadily increased from 1996 to 1999. Banks established after deregulation, on average, had a lower rate of NPLs than those established before deregulation.

原文English
頁(從 - 到)405-420
頁數16
期刊Developing Economies
42
發行號3
DOIs
出版狀態Published - 9月 2004

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