How does bank competition affect trade-mode transformation? Evidence from Chinese export enterprises

IF 2.9 3区经济学 Q2 BUSINESS, FINANCE

Journal of Multinational Financial Management Pub Date : 2023-11-23 DOI:10.1016/j.mulfin.2023.100825

Rui Wang, Keqi Mao

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Abstract

This study investigates the effect of banking competition on the transformation of Chinese firms' export trade mode. We use matched data from the Chinese Industrial Enterprise Database and the Chinese Customs Trade Statistics between 2007 and 2013 to measure export firm trade-mode, and apply the number of commercial bank branches at the prefecture level to gauge bank competitiveness. With a large firm-level dataset, we find that bank competition affects a company's transition from processing mode to ordinary trade. The validity of our findings is confirmed through several robustness tests. Furthermore, we examine the underlying processes through which bank competition influences trade-mode transformation by means of firms' financial constraints, the regional marketization process and banking structural characteristics. Finally, we investigate the heterogeneity conditions and find that firms with distinct ownership structures and in different geographical locations demonstrate diverse performances in the aforementioned connection. The empirical findings provide crucial evidence to enhance the understanding of the relationship between banking institutions and company exports in emerging economies.

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银行竞争如何影响贸易方式的转变?来自中国出口企业的证据

本文研究银行业竞争对我国企业出口贸易方式转变的影响。本文采用2007 - 2013年中国工业企业数据库和中国海关贸易统计数据的匹配数据来衡量出口企业贸易模式，并采用地级商业银行分支机构数量来衡量银行竞争力。利用大型企业层面的数据集，我们发现银行竞争会影响企业从加工模式向普通贸易模式的转变。我们的研究结果的有效性通过几个稳健性测试得到证实。此外，我们还通过企业的资金约束、区域市场化进程和银行结构特征考察了银行竞争影响贸易方式转变的潜在过程。最后，我们考察了异质性条件，发现不同股权结构和不同地理位置的公司在上述联系中表现出不同的绩效。实证研究结果为加深对新兴经济体银行机构与企业出口之间关系的理解提供了重要证据。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Multinational Financial Management BUSINESS, FINANCE-

CiteScore

7.30

自引率

4.80%

发文量

审稿时长

30 days

期刊介绍： International trade, financing and investments have grown at an extremely rapid pace in recent years, and the operations of corporations have become increasingly multinationalized. Corporate executives buying and selling goods and services, and making financing and investment decisions across national boundaries, have developed policies and procedures for managing cash flows denominated in foreign currencies. These policies and procedures, and the related managerial actions of executives, change as new relevant information becomes available. The purpose of the Journal of Multinational Financial Management is to publish rigorous, original articles dealing with the management of the multinational enterprise. Theoretical, conceptual, and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • Foreign exchange risk management • International capital budgeting • Forecasting exchange rates • Foreign direct investment • Hedging strategies • Cost of capital • Managing transaction exposure • Political risk assessment • International working capital management • International financial planning • International tax management • International diversification • Transfer pricing strategies • International liability management • International mergers.