Data and Code for: SOEs and Soft Incentive Constraints in State Bank Lending

Principal Investigator(s): View help for Principal Investigator(s) Yiming Cao, Boston University; Raymond Fisman, Boston University; Hui Lin, Nanjing University; Yongxiang Wang, Chinese University of Hong Kong, Shenzhen and Shanghai Jiao Tong University

Version: View help for Version V1

Name	File Type	Size	Last Modified
Code			11/14/2022 06:27:PM
Confidential			11/14/2022 06:29:PM
Data			11/14/2022 06:32:PM
Results			11/14/2022 06:30:PM
Readme.pdf	application/pdf	117.3 KB	11/14/2022 01:40:PM

Project Citation:

Cao, Yiming, Fisman, Raymond, Lin, Hui, and Wang, Yongxiang. Data and Code for: SOEs and Soft Incentive Constraints in State Bank Lending. Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-02-03. https://doi.org/10.3886/E182963V1

Project Description

Summary:

We study how Chinese state bank managers' lending incentives impact lending to state-owned enterprises. We show lending quantity increases and quality decreases at month's end, indicating monthly lending targets that decrease lending standards. Increased quantity comes from both SOEs and private lending, whereas decreased quality is from only SOEs, which continue to receive loans even after prior defaults (particularly at month's end). We suggest that SOE lending may thus be beneficial for state bank managers, who lend to delinquent state enterprises to meet targets, which in turn may exacerbate SOEs' soft budget constraints.

Funding Sources: National Natural Science Foundation of China (72172090)

Scope of Project

Subject Terms: Bank; Loan

JEL Classification:
      G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
      G28 Financial Institutions and Services: Government Policy and Regulation
      L32 Public Enterprises; Public-Private Enterprises
      O16 Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
      P34 Socialist Institutions and Their Transitions: Financial Economics

Geographic Coverage: China

Time Period(s): 1/1/1997 – 12/31/2010

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Published Versions

V1 [2023-02-03]

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