Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

The determinants and profitability of switching costs in Chinese banking

Yin, Wei and Matthews, Kent 2014. The determinants and profitability of switching costs in Chinese banking. [Working Paper]. Cardiff Economics Working Papers, Cardiff: Cardiff University.

[img]
Preview
PDF - Published Version
Download (688kB) | Preview

Abstract

Using a sample of 151 banks over the period 2003 to 2010, this paper estimates a model that examines the effect of switching costs in the Chinese loan market on banking profitability. In keeping with the extant empirical literature it reports a positive relationship between bank profitability and switching costs. Furthermore it reports the estimation of a systems model of switching costs and profitability. The main result is that bank size measured by total assets is has a complex relationship with switching costs. Competition between small banks creates the incentive for lock-in and increased switching costs whereas very large banks are less exercised by lock-in and switching costs. The study also finds that concentration has a negative relationship with switching costs and profitability, confirming the accepted view that the large state-owned banks are concerned with social as well as profit objectives.

Item Type: Monograph (Working Paper)
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HB Economic Theory
Publisher: Cardiff University
Date of First Compliant Deposit: 30 March 2016
Last Modified: 04 Jun 2017 08:26
URI: http://orca.cf.ac.uk/id/eprint/78015

Citation Data

Cited 1 time in Google Scholar. View in Google Scholar

Actions (repository staff only)

Edit Item Edit Item

Downloads

Downloads per month over past year

View more statistics