Single versus multiple banking relationships-evidence from Chinese lending market

Wei Yin, Kent Matthews

Research output: Journal PublicationArticlepeer-review

2 Citations (Scopus)

Abstract

Using Chinese firm level data for 2003-2012, this paper determines the factors that drive firms to switch from single bank loan providers to multiple bank loan providers. The results show that large firms are more likely to switch from single to multiple lending relationships. This study finds that medium size and small firms of high quality are more likely to have a single borrower relationship while large and high quality firms are more likely to have multiple bank relationships. Increasing market competition decreases the probability of single bank-firm relationship.

Original languageEnglish
Pages (from-to)227-250
Number of pages24
JournalSingapore Economic Review
Volume62
Issue number1
DOIs
Publication statusPublished - 1 Mar 2017
Externally publishedYes

Keywords

  • Chinese firms
  • bank switching
  • single and multiple credit provider

ASJC Scopus subject areas

  • Economics and Econometrics

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