IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v93y2024ipbp641-658.html
   My bibliography  Save this article

Does high-speed rail boost local bank performance? Evidence from China

Author

Listed:
  • Wen, Huiyu
  • Wang, Hui
  • Zhao, Danni
  • Gao, Haoyu

Abstract

This paper investigates whether and how high-speed rail (HSR) construction affects local bank performance. Using the difference-in-differences method, we find that the city commercial banks (CCBs) significantly experience an overall decrease in ROA after HSR is introduced in their headquarters cities. Mechanism analyses suggests that the HSR-driven city connectivity imposes the local CCBs on the intensified banking competition related to freer capital flows, and improves bank governance associated with information flows. HSR exerts more pronounced impacts under higher financial liberalization. The findings are robust to the endogeneity concerns. We highlight the indispensable role of transport infrastructure in banking development.

Suggested Citation

  • Wen, Huiyu & Wang, Hui & Zhao, Danni & Gao, Haoyu, 2024. "Does high-speed rail boost local bank performance? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 641-658.
    • Handle: RePEc:eee:reveco:v:93:y:2024:i:pb:p:641-658
    DOI: 10.1016/j.iref.2024.03.081
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056024002466
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2024.03.081?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Bank performance; City commercial bank; High-speed rail; Bank competition; Information flows;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:93:y:2024:i:pb:p:641-658. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.