Empirical Analysis of the Relationship between Cost Efficiency and Loan Loss Provision in Chinese Commercial Banks
Using the panel data from the year 2008-2015 of 54 Chinese commercial banks, this study verifies three hypothesis including income smoothing, capital management and the business cycle. Meanwhile, the relationship between cost efficiency, global financial crisis and loan loss provisions has also be...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2017
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| Online Access: | https://eprints.nottingham.ac.uk/45724/ |
| _version_ | 1848797181286285312 |
|---|---|
| author | LIN, TAORAN |
| author_facet | LIN, TAORAN |
| author_sort | LIN, TAORAN |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Using the panel data from the year 2008-2015 of 54 Chinese commercial banks, this study verifies three hypothesis including income smoothing, capital management and the business cycle. Meanwhile, the relationship between cost efficiency, global financial crisis and loan loss provisions has also been discussed and proved by the regression models. The empirical analysis proves the hypothesis of income smoothing and procyclicality management while it cannot find the evidence of capital management in Chinese commercial banks. Moreover, the sample data cannot support the hypothesis that the cost efficiency can affect the loan loss provision. When the effect of global financial crisis was considered, the income smoothing behaviours cannot be proved by sample data but pro cyclicality management still exists according to this study. |
| first_indexed | 2025-11-14T19:59:47Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-45724 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:59:47Z |
| publishDate | 2017 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-457242018-04-17T15:19:11Z https://eprints.nottingham.ac.uk/45724/ Empirical Analysis of the Relationship between Cost Efficiency and Loan Loss Provision in Chinese Commercial Banks LIN, TAORAN Using the panel data from the year 2008-2015 of 54 Chinese commercial banks, this study verifies three hypothesis including income smoothing, capital management and the business cycle. Meanwhile, the relationship between cost efficiency, global financial crisis and loan loss provisions has also been discussed and proved by the regression models. The empirical analysis proves the hypothesis of income smoothing and procyclicality management while it cannot find the evidence of capital management in Chinese commercial banks. Moreover, the sample data cannot support the hypothesis that the cost efficiency can affect the loan loss provision. When the effect of global financial crisis was considered, the income smoothing behaviours cannot be proved by sample data but pro cyclicality management still exists according to this study. 2017-09-11 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/45724/1/Dissertation%20Taoran%20Lin.pdf LIN, TAORAN (2017) Empirical Analysis of the Relationship between Cost Efficiency and Loan Loss Provision in Chinese Commercial Banks. [Dissertation (University of Nottingham only)] |
| spellingShingle | LIN, TAORAN Empirical Analysis of the Relationship between Cost Efficiency and Loan Loss Provision in Chinese Commercial Banks |
| title | Empirical Analysis of the Relationship between Cost Efficiency and Loan Loss Provision in Chinese
Commercial Banks |
| title_full | Empirical Analysis of the Relationship between Cost Efficiency and Loan Loss Provision in Chinese
Commercial Banks |
| title_fullStr | Empirical Analysis of the Relationship between Cost Efficiency and Loan Loss Provision in Chinese
Commercial Banks |
| title_full_unstemmed | Empirical Analysis of the Relationship between Cost Efficiency and Loan Loss Provision in Chinese
Commercial Banks |
| title_short | Empirical Analysis of the Relationship between Cost Efficiency and Loan Loss Provision in Chinese
Commercial Banks |
| title_sort | empirical analysis of the relationship between cost efficiency and loan loss provision in chinese
commercial banks |
| url | https://eprints.nottingham.ac.uk/45724/ |