RYU Asei
   Department   Hiroshima shudo University  The Faculty of Economic Sciences
   Position   Professor
Language English
Publication Date 2016/10
Type Articles
Peer Review With peer review
Title How should banks support SMEs to manage funding risks in China? The role of relationship banking
Contribution Type Co-Authored Publication
Journal Risk Management in Emerging Markets:Issues, Framework and Modeling
Journal TypeAnother Country
Publisher Emerald Group Publishing
Volume, Issue, Pages pp.365-398
Author and coauthor Yajing Liu , Kenya Fujiwara , Toshiki Jinushi , Nobuyoshi Yamori
Details It is broadly recognized in China that funding risks due to a lack of sufficient financial support from banks are the most crucial constraints that prevent the growth of small and medium enterprises (SMEs). In this paper, we investigate whether the relationship banking business model can be applied in China. Using the data of 183 SMEs in Zhejiang Province in China, we estimated the ordered logistic and OLS models to examine several hypotheses regarding relationship banking. We found evidence suggesting that relationship banking can mitigate funding risks for SMEs in China.