Banking Reform and Corporate Governance

China's Corporate Bond Market Development

“…In emerging economies, given the information asymmetry between borrowers and lenders, firms typically rely on inside sources of capital and loans from banks that are able to efficiently screen and monitor borrowers. However, state control of the banking industry in China potentially hampers the efficiency of the industry (Lo and Ng 2009). Various measures to improve the efficiency of the sector have been considered, including the development of Downloaded by [Dalhousie University] at 01:10 11 October 2015 a credit-reporting system that facilitates the sharing of default-related information among banks in China (Zhang and Smyth 2009). 6.…”

Cross‐market Trading in China's Large State‐owned Commercial Banks, 2006–2011

“…Actual post‐IPO share price performance by the major banks has not always been so impressive, however. Lo and Ng (2009) find that, whereas BOCOM and ICBC delivered significant abnormal returns, CCB's performance was mixed and BOC lagged the market 4…”

Political Interference and Earnings Manipulation in Chinese Firms

“…Lo and Ng (2009) showed that China still has a "market economy with socialist characteristics," because the government firmly controls banks and appoints bank managers. There is no doubt that state-dominated firms have relatively little difficulty in obtaining loans.…”

“…Lo and Ng (2009) indicated that the government firmly controls banks and appoints bank managers. Firms with greater state holdings and close relations with the government are able to obtain bank loans more easily than firms with lower state holdings, due to state influence on the banks making the loans.…”