| dc.description.abstract | For analyzing the performance of small business lending in internal banking industry,we use the regression model of Carter and McNulty(2005)、Berger et al. (2005) to test the relationshipbetween risk-adjusted business yield, the size of banks, small business lending, and regulation-and-technology changes. Besides OLS, we also consider random effect model to acquire robust results. From both models, the consistent results are as follows. Fist, the returns to business lending have declined over the sample period. Second, size-of-bank effects do not exist and size-of-loan effects are negative related. Additionally, there is no significantstatistic that adjusted-risk business yields of public banks are different from privatebanks, but there is evidence showed that the business lending performance of the new banks in 1991 is significantly better than other banks.
Moreover, we jointly analyze the static, selection, and dynamic effects of domestic, state, and foreign ownership on bank performance. State-owned banks have poor long-term performance (static effect), financial holding banks and foreign banks have much better performance than state-owned banks (selection effect), and financial holding banks and foreign banks have poor performance in the short run, but it may reverse in the long run (dynamic effect).
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