Competition, Innovation, Risk-Taking, and Profitability in the Chinese Banking Sector: An Empirical Analysis Based on Structural Equation Modeling
We introduce a new perspective to systematically investigate the cause-and-effect relationships among competition, innovation, risk-taking, and profitability in the Chinese banking industry. Our hypotheses are tested by the structural equation modeling (SEM), and the empirical results show that (i)...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2016-01-01
|
| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2016/3695379 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850229931964891136 |
|---|---|
| author | Ti Hu Chi Xie |
| author_facet | Ti Hu Chi Xie |
| author_sort | Ti Hu |
| collection | DOAJ |
| description | We introduce a new perspective to systematically investigate the cause-and-effect relationships among competition, innovation, risk-taking, and profitability in the Chinese banking industry. Our hypotheses are tested by the structural equation modeling (SEM), and the empirical results show that (i) risk-taking is positively related to profitability; (ii) innovation positively affects both risk-taking and profitability, and the effect of innovation on profitability works both directly and indirectly; (iii) competition negatively affects risk-taking but positively affects both innovation and profitability, and the effects of competition on risk-taking and profitability work both directly and indirectly; (iv) there is a cascading relationship among market competition and bank innovation, risk-taking, and profitability. |
| format | Article |
| id | doaj-art-29e887ee06574029b5caa92bca90aeed |
| institution | OA Journals |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2016-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-29e887ee06574029b5caa92bca90aeed2025-08-20T02:04:01ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2016-01-01201610.1155/2016/36953793695379Competition, Innovation, Risk-Taking, and Profitability in the Chinese Banking Sector: An Empirical Analysis Based on Structural Equation ModelingTi Hu0Chi Xie1College of Business Administration, Hunan University, Hunan, ChinaCollege of Business Administration, Hunan University, Hunan, ChinaWe introduce a new perspective to systematically investigate the cause-and-effect relationships among competition, innovation, risk-taking, and profitability in the Chinese banking industry. Our hypotheses are tested by the structural equation modeling (SEM), and the empirical results show that (i) risk-taking is positively related to profitability; (ii) innovation positively affects both risk-taking and profitability, and the effect of innovation on profitability works both directly and indirectly; (iii) competition negatively affects risk-taking but positively affects both innovation and profitability, and the effects of competition on risk-taking and profitability work both directly and indirectly; (iv) there is a cascading relationship among market competition and bank innovation, risk-taking, and profitability.http://dx.doi.org/10.1155/2016/3695379 |
| spellingShingle | Ti Hu Chi Xie Competition, Innovation, Risk-Taking, and Profitability in the Chinese Banking Sector: An Empirical Analysis Based on Structural Equation Modeling Discrete Dynamics in Nature and Society |
| title | Competition, Innovation, Risk-Taking, and Profitability in the Chinese Banking Sector: An Empirical Analysis Based on Structural Equation Modeling |
| title_full | Competition, Innovation, Risk-Taking, and Profitability in the Chinese Banking Sector: An Empirical Analysis Based on Structural Equation Modeling |
| title_fullStr | Competition, Innovation, Risk-Taking, and Profitability in the Chinese Banking Sector: An Empirical Analysis Based on Structural Equation Modeling |
| title_full_unstemmed | Competition, Innovation, Risk-Taking, and Profitability in the Chinese Banking Sector: An Empirical Analysis Based on Structural Equation Modeling |
| title_short | Competition, Innovation, Risk-Taking, and Profitability in the Chinese Banking Sector: An Empirical Analysis Based on Structural Equation Modeling |
| title_sort | competition innovation risk taking and profitability in the chinese banking sector an empirical analysis based on structural equation modeling |
| url | http://dx.doi.org/10.1155/2016/3695379 |
| work_keys_str_mv | AT tihu competitioninnovationrisktakingandprofitabilityinthechinesebankingsectoranempiricalanalysisbasedonstructuralequationmodeling AT chixie competitioninnovationrisktakingandprofitabilityinthechinesebankingsectoranempiricalanalysisbasedonstructuralequationmodeling |