PAN Min,WEI Hairui:Do Political Connections of Executives Affect the Cyclical Characteristics of Commercial Banks' Lending?——Evidences from China's Banking Industry

Abstract：Using an unbalanced panel data of China's banking industry from 2003 to 2012,this paper examines the relationships between political connections of banks' executives and the cyclical characteristics of banks' lending and the effects of bank executives' ages,and oversea education backgrounds on the relationships.Analysis shows that,China's banks' lending is obviously counter-cyclical during the sample period,the lending behaviors of banks with higher executives' political connections are more counter-cyclical.Furthermore,with the increase of executives' ages,the effect of executives' political connections on banks' lending behaviors is weakening,and the executives' oversea education background has no influence on the relationships between the executives' political connections and the cyclical characteristics of banks' lending.

Key words： Executives' Political Connection    Bank Lending    Business Cycle

source:Finance & Trade Economics ,No.4,2015