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Frontiers of Economics in China

, Volume 4, Issue 1, pp 76–96 | Cite as

Resident’s comparative assessment on domestic versus foreign financial institutions: Evidence from nine cities in China

  • Tao LiEmail author
  • Xingqiang He
  • Kaiguo Zhou
Research Article
  • 15 Downloads

Abstract

Between domestic financial institutions and foreign or joint venture ones in China, which ones do Chinese people give better assessment to? And what factors affect those comparative assessments? With a household survey in nine cities in China in 2006, we find that China’s domestic financial institutions are considered better than foreign or joint venture ones in terms of financial products, communication with investors, security and prudence, operation standardization and service attitudes. When taken into account the endogeneity of people’s trust on government regulation agencies, empirical results show that people’s more attention to returns or the more trust on government regulation agencies leads to their better assessments on domestic financial institutions than foreign or joint venture ones. The policy implications are: Chinese governments have to take measures to improve residents’ trust in governmental regulation and create a fair competition environment for domestic and foreign financial institutions in China. Domestic and foreign financial institutions make efforts to develop a higher rate-of-return and attractive financial products to service more customers.

Keywords

Chinese-owned financial institution foreign financial institution rate of return on capital trust 

摘要

居民对中、 外资的金融机构评价何者更高? 什么因素影响了居民的比较评价结果? 采用2006年中国9城市居民调查数据, 发现: 多数居民认为, 中资金融机构在所设计的金融产品、 与投资者的沟通、 安全性和稳健性、 经营的规范性、 服务态度等方面都优于外资金融机构。 考虑居民对政府监맜部门信任程度的内生性, 回归结果显示: 居民在选择中、 外资金融机构时对收益水平的关注程度越高, 或者居民对政府监맜部门的信任程度越高, 他们对中资金融机构的评价就越高。 政府应该通过提高居民对政府监맜部门的信任程度来为中、 外资金融机构创造公平竞争环境, 而中、 外资金融机构应该通过开发高收益水平的金融产品来吸引更多的顾客。

关键词

中资金融机构 外资金融机构 收益水平 信任 

JEL Classification

G20 G28 Z13 

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Copyright information

© Higher Education Press and Springer-Verlag GmbH 2009

Authors and Affiliations

  1. 1.School of FinanceRenmin University of ChinaBeijingChina
  2. 2.Lingnan CollegeSun Yat-sen UniversityGuangzhouChina

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