The Relationship between Efficiency and Share Prices: an Analysis of Chinese Bank State Ownership
This study analyses the efficiency, share prices and state ownership of Chinese listed banks from years 2007 to 2017. Stochastic Frontier Analysis is used to calculate cost efficiency and profit efficiency. System Generalised Method of Moments is used to do regression analysis on the three variables...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2018
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| Online Access: | https://eprints.nottingham.ac.uk/53460/ |
| _version_ | 1848798945214464000 |
|---|---|
| author | Shi, Yao |
| author_facet | Shi, Yao |
| author_sort | Shi, Yao |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This study analyses the efficiency, share prices and state ownership of Chinese listed banks from years 2007 to 2017. Stochastic Frontier Analysis is used to calculate cost efficiency and profit efficiency. System Generalised Method of Moments is used to do regression analysis on the three variables. It is found that Chinese banks have high cost and profit efficiency overall, but 2010 European debt crisis and 2016 deleveraging campaign have significant negative influences. State ownership has negative impact on share prices and efficiency. This confirms the Low Incentive Hypothesis proposed in this study. Profit efficiency is positively reflected in share prices, but cost efficiency is not significant. This confirms the Efficient Stock Market Hypothesis. Share prices have positive influence on cost efficiency, but have negative influence on profit efficiency. This confirms both the Low Capital Cost and Low Incentive Hypothesis. |
| first_indexed | 2025-11-14T20:27:50Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-53460 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:27:50Z |
| publishDate | 2018 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-534602022-01-24T17:05:46Z https://eprints.nottingham.ac.uk/53460/ The Relationship between Efficiency and Share Prices: an Analysis of Chinese Bank State Ownership Shi, Yao This study analyses the efficiency, share prices and state ownership of Chinese listed banks from years 2007 to 2017. Stochastic Frontier Analysis is used to calculate cost efficiency and profit efficiency. System Generalised Method of Moments is used to do regression analysis on the three variables. It is found that Chinese banks have high cost and profit efficiency overall, but 2010 European debt crisis and 2016 deleveraging campaign have significant negative influences. State ownership has negative impact on share prices and efficiency. This confirms the Low Incentive Hypothesis proposed in this study. Profit efficiency is positively reflected in share prices, but cost efficiency is not significant. This confirms the Efficient Stock Market Hypothesis. Share prices have positive influence on cost efficiency, but have negative influence on profit efficiency. This confirms both the Low Capital Cost and Low Incentive Hypothesis. 2018-08-24 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/53460/1/yao_final%20dissertation%20version.pdf Shi, Yao (2018) The Relationship between Efficiency and Share Prices: an Analysis of Chinese Bank State Ownership. [Dissertation (University of Nottingham only)] |
| spellingShingle | Shi, Yao The Relationship between Efficiency and Share Prices: an Analysis of Chinese Bank State Ownership |
| title | The Relationship between Efficiency and Share Prices: an Analysis of Chinese Bank State Ownership |
| title_full | The Relationship between Efficiency and Share Prices: an Analysis of Chinese Bank State Ownership |
| title_fullStr | The Relationship between Efficiency and Share Prices: an Analysis of Chinese Bank State Ownership |
| title_full_unstemmed | The Relationship between Efficiency and Share Prices: an Analysis of Chinese Bank State Ownership |
| title_short | The Relationship between Efficiency and Share Prices: an Analysis of Chinese Bank State Ownership |
| title_sort | relationship between efficiency and share prices: an analysis of chinese bank state ownership |
| url | https://eprints.nottingham.ac.uk/53460/ |