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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