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Bank Finance Heterogeneity in China: Micro-Level Evidence

by Chunyang Wang, Tianran Niu

ARTICLE | Applied Economics Letters | Vol. 21, No. 2, 2014


Abstract


This article finds that there is a nonlinear relationship between a city’s development level and a bank’s impact confirm performance in China, by using firm level data. In particular, bank’s impact on firm performance is largest in cities with intermediate level of development. This article reconciles the work done by Allen et al. (2005) and that done by Ayyagari et al. (2010).
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