The paper "Banking Market Deregulation and Firm Innovation: Evidence from Foreign Bank Entry" co authored by Associate Professor Shang Hua and her doctoral student Xing Yanlin has been officially published in the internationally authoritative journal "Journal of Banking and Finance" (JBF) in the field of finance. Xingyanlin graduated in 2024 and is currently a lecturer at Chengdu University of Technology.

Abstract of the paper:

This study examines the impact of deregulation in the banking market on corporate innovation, with a focus on the context of foreign banks entering China. Taking advantage of China's gradual relaxation of access to foreign banks after joining the World Trade Organization, we have found that the entry of foreign banks has significantly promoted corporate innovation. Further analysis shows that this effect not only stems from foreign banks directly providing more and higher quality financial services, but also plays a role through the following two indirect channels: first, it prompts domestic banks to increase credit investment in enterprises that master soft information, enhancing their ability to support enterprise innovation activities; The second is to further promote enterprise innovation through the technology spillover effect of foreign-funded enterprises.

This study investigates the impact of banking market deregulation on firm innovation, focusing on foreign bank entry. Exploiting the staggered deregulation of China’s banking sector to foreign banks following its accession to the World Trade Organization, we find a significant positive relationship between foreign bank entry and firm innovation. We further show that foreign bank entry could promote firm innovation directly by providing more and higher-quality banking services to customers, and indirectly by inducing domestic banks to extend more credit to firms with more soft information, enhancing their capacity to support innovative firms, and generating technology spillovers through an increased presence of foreign-invested firms.

Personal Profile:

Shang Hua is an associate professor and doctoral supervisor in the Department of Finance and Accounting at RIEM. She is a high-level foreign talent in Sichuan Province and a member of the Guanghua Youth Scholar Growth Program. She has been awarded the title of excellent undergraduate thesis advisor by the school multiple times. Serving as a member of the World Banking and Finance Conference program committee.

She research interests include financial market development, international finance, and corporate development. Related achievements have been published in various publications, including Journal of International Business Studies（FT50, UTD24）、Journal of Banking and Finance、International Review of Economics & Finance Waiting for international authoritative journals. I am currently a teacher in the Department of Finance and Accounting, and have taught courses in Corporate Finance, Advanced Investment Studies, Accounting, Accounting Information Systems, and Management Accounting.