Abstract

The shareholding network provides a new paradigm to describe the relations between banks and their large shareholders. This shareholding network can affect bank performance where social capital embedded in it can be explained as the functioning mechanism and can be quantitatively measured by centrality metrics in network analysis. Specifically, this paper attempts to examine if the shareholding network has impact on banks’ risk-taking behavior in the context of the Chinese commercial banks. Our results show that the degree centralities in the BS Net and BB Net reflect the two-sided effects on banks’ risk-taking behavior.

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