Testing loan loss provisioning hypotheses for banks in China
The purpose of this paper is to test four hypotheses which are related to bank loan loss provision: income smoothing, capital management, business cycle and bank efficiency. Data is collected for Chinese banks in 2011 to 2016, and Stochastic frontier analysis and Generalized method of moments are ta...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
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2017
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| Online Access: | https://eprints.nottingham.ac.uk/45693/ |
| _version_ | 1848797175404822528 |
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| author | HU, XIAOXI |
| author_facet | HU, XIAOXI |
| author_sort | HU, XIAOXI |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | The purpose of this paper is to test four hypotheses which are related to bank loan loss provision: income smoothing, capital management, business cycle and bank efficiency. Data is collected for Chinese banks in 2011 to 2016, and Stochastic frontier analysis and Generalized method of moments are taken for analysis. The results support bank efficiency hypothesis in Chinese non state-owned banks, and indicate the countercyclicality of loan loss provision in both state-owned banks and non state-owned banks. However, there is no evidence for income-smoothing behaviour and capital management hypothesis. |
| first_indexed | 2025-11-14T19:59:42Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-45693 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:59:42Z |
| publishDate | 2017 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-456932018-04-17T15:16:44Z https://eprints.nottingham.ac.uk/45693/ Testing loan loss provisioning hypotheses for banks in China HU, XIAOXI The purpose of this paper is to test four hypotheses which are related to bank loan loss provision: income smoothing, capital management, business cycle and bank efficiency. Data is collected for Chinese banks in 2011 to 2016, and Stochastic frontier analysis and Generalized method of moments are taken for analysis. The results support bank efficiency hypothesis in Chinese non state-owned banks, and indicate the countercyclicality of loan loss provision in both state-owned banks and non state-owned banks. However, there is no evidence for income-smoothing behaviour and capital management hypothesis. 2017-09-11 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/45693/1/Dissertation-Xiaoxi%20HU.pdf HU, XIAOXI (2017) Testing loan loss provisioning hypotheses for banks in China. [Dissertation (University of Nottingham only)] loan loss provision; income smoothing; capital management; business cycle; bank efficiency. |
| spellingShingle | loan loss provision; income smoothing; capital management; business cycle; bank efficiency. HU, XIAOXI Testing loan loss provisioning hypotheses for banks in China |
| title | Testing loan loss provisioning hypotheses for banks in China |
| title_full | Testing loan loss provisioning hypotheses for banks in China |
| title_fullStr | Testing loan loss provisioning hypotheses for banks in China |
| title_full_unstemmed | Testing loan loss provisioning hypotheses for banks in China |
| title_short | Testing loan loss provisioning hypotheses for banks in China |
| title_sort | testing loan loss provisioning hypotheses for banks in china |
| topic | loan loss provision; income smoothing; capital management; business cycle; bank efficiency. |
| url | https://eprints.nottingham.ac.uk/45693/ |