Loan Loss Provisioning Behavior in Chinese Banking
Using a panel database of 31 Chinese banks during 2010-2014, we investigate the loan loss provisioning (LLP) behavior and the determinants that may exert an effect on provisions. We test the hypothesis of income smoothing, capital management and the business cycle, also with the impact of cost effic...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2016
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| Online Access: | https://eprints.nottingham.ac.uk/36349/ |
| _version_ | 1848795270661275648 |
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| author | Jiang, Bi-Fei |
| author_facet | Jiang, Bi-Fei |
| author_sort | Jiang, Bi-Fei |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Using a panel database of 31 Chinese banks during 2010-2014, we investigate the loan loss provisioning (LLP) behavior and the determinants that may exert an effect on provisions. We test the hypothesis of income smoothing, capital management and the business cycle, also with the impact of cost efficiency on banks’ provisioning behavior. Our empirical results do not support the income smoothing and capital management hypothesis. However, we find a mixed result in the cyclical effect which is that the procyclical effect plays a dominant role while there’s also countercyclical practice in the banking industry. The evidence of cost efficiency also supports the procyclicality. |
| first_indexed | 2025-11-14T19:29:25Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-36349 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:29:25Z |
| publishDate | 2016 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-363492017-10-19T16:56:24Z https://eprints.nottingham.ac.uk/36349/ Loan Loss Provisioning Behavior in Chinese Banking Jiang, Bi-Fei Using a panel database of 31 Chinese banks during 2010-2014, we investigate the loan loss provisioning (LLP) behavior and the determinants that may exert an effect on provisions. We test the hypothesis of income smoothing, capital management and the business cycle, also with the impact of cost efficiency on banks’ provisioning behavior. Our empirical results do not support the income smoothing and capital management hypothesis. However, we find a mixed result in the cyclical effect which is that the procyclical effect plays a dominant role while there’s also countercyclical practice in the banking industry. The evidence of cost efficiency also supports the procyclicality. 2016-09-07 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36349/1/Dissertation%204253430%20Bifei%20Jiang.pdf Jiang, Bi-Fei (2016) Loan Loss Provisioning Behavior in Chinese Banking. [Dissertation (University of Nottingham only)] Loan Loss Provisions Chinese Banks Efficiency |
| spellingShingle | Loan Loss Provisions Chinese Banks Efficiency Jiang, Bi-Fei Loan Loss Provisioning Behavior in Chinese Banking |
| title | Loan Loss Provisioning Behavior in Chinese Banking |
| title_full | Loan Loss Provisioning Behavior in Chinese Banking |
| title_fullStr | Loan Loss Provisioning Behavior in Chinese Banking |
| title_full_unstemmed | Loan Loss Provisioning Behavior in Chinese Banking |
| title_short | Loan Loss Provisioning Behavior in Chinese Banking |
| title_sort | loan loss provisioning behavior in chinese banking |
| topic | Loan Loss Provisions Chinese Banks Efficiency |
| url | https://eprints.nottingham.ac.uk/36349/ |