Study On The Efficiency Of State-owned And Private Banks In The Republic Of China(1924-1936)

On March 23,1923,joint state-private owned Chekiang Industrial Bank ? was divided into state-owned Chekiang Provincial Bank and private Chekiang Industrial Bank ?.So this paper examines the efficiency of the two Banks with different property right structures from 1924 to 1936,particularly compares the efficiency from 1932 to 1936 based on the method of timing of global principal components analysis,and analyses the reasons of the differences in efficiency.It is found that from 1933 to 1936,Chekiang Provincial Bank was more efficient than Chekiang Industrial Bank ?.This suggests that it is different from the general understanding of the efficiency of enterprises:the efficiency of state-owned bank,even state-owned enterprise,is not lower than that of joint-stock bank,even private enterprise.And this paper argues that the essence of the relationship between property right structure and the efficiency of bank is the principal-agent problem,whether the property right structure has a significant effect on the efficiency of bank depends on the role of the principal-agent problem.As a state-owned bank,Chekiang Provincial Bank's outstanding performance in efficiency can bring a lot of references and revelations to the managements of modem Banks and enterprises,even the reforms of state-owned enterprises.This paper mainly has six parts.Part 1 is an introduction,introduces the topic selection,historical materials,data and methods,and the structure of the paper,and reviews relevant literature;Part 2 is the beginning and ending of the break-up of Chekiang Industrial Bank I,detailedly discuss the cause,course and result of this break-up,to get familiar with the historical background;Part 3 compares the operation modes of Chekiang Provincial Bank and Chekiang Industrial Bank ?from 1932 to 1936 to look for the reasons of the differences in efficiency;Part 4 compares the financial indicators and the efficiency of Chekiang Provincial Bank and Chekiang Industrial Bank ? from 1932 to 1936;Part 5 is the reasons of the differences in efficiency between Chekiang Provincial Bank and Chekiang Industrial Bank ?,mainly discusses four factors that support Chekiang Provincial Bank's outstanding performance in efficiency(talents' and institutions' guarantee,governmental support,managements' assistance and historical opportunity),and analyses the influences of the four factors on the four principal components(yl-y4),so that the Chekiang Provincial Bank has a higher comprehensive score Y(efficiency)from 1933 to 1936.Part 6 gives the conclusions and revelations.This paper mainly has three innovations:1.Based on the method of timing of global principal components analysis,it is found that from 1933 to 1936,state-owned Chekiang Provincial Bank realized and maintained the transcendence in efficiency towards private Chekiang Industrial Bank ?,that is to say,the efficiency of state-owned Banks or enterprises is not necessarily lower than that of private Banks or enterprises.This breaks the current general understanding of the efficiency of enterprises,also can bring a lot of inspirations to the managements of modern banks and enterprises.2.By sorting out the existing literature on the relationship between property right structure and the efficiency of bank,combined with the relevant historical facts and performance of Chekiang Provincial Bank,it is found that the essence of this problem is the principal-agent problem,that is to say,whether the property right structure has a significant effect on the efficiency of bank depends on the role of the principal-agent problem.This can uniformly explain the empirical results in the existing literature,supporting traditional property right theory,environmental pressure theory,beyond property-right argument and so on,greatly enhance the explanatory power of theory.3.The research perspective and time range are extended:From the perspective of the efficiency of banks with different property right structures,this paper studies Chekiang Provincial Bank and Chekiang Industrial Bank ?,expands the research perspective and the literature of the two Banks;Domestic and foreign research samples on the relationship between property right structure and the efficiency of bank are all made after 1950,the research period of this paper is 1924-1936,so the time range of the research on this problem is extended.