The Study Of Market Performance Chinese Commercial Bank

Industrial Economics theories considers market structure influences market conduct, market conduct influences market performance. Studies of Chinese commercial banks focused on market structure aspect, but this thesis tries to study commercial banks from market performance. In conclusion, researches related Chinese commercial banks have two important angles: one is based on SCP model, judging what kind of market structure the Chinese commercial bank was, then test market performance from market structure; the other is based on efficiency, from the early scale economy to scope economy, then to cost efficiency, X-efficiency which apply input-output method, such as DEA (Data Envelopment Analysis), SFA (Stochastic Frontier Approach), etc..If we review market performance's definition, we find that it has the meaning of efficiency, equity and competition, so studies of market performance should include financial achievements and efficiency at least. Based on previous research, especially the illumination of Xie Chaohua, Chen Xuebin(2005), this study try to test commercial bank's financial results and efficiency from structural factors, including market structure, equity structure, functional structure and governance structure. We use financial results measurement (ROA, ROE) and efficiency measurement(CE, Malmquist Productivity Index) each as dependent variables, market structure measurement(market share), functional structure measurement (deposit/loan interest rate, non-interest income share, cost-income rate, deposit-loan rate, loan loss reserve rate and liquidity rat) and corporate governance measurement(IPO) as independent variables to process panel data regression. The results shows that, the factors influence financial results and efficiency are not same; Chinese commercial banks exhibit serious monopoly characteristic; market share leading banks are not efficiency leading banks; interest income are still the main income source, non-interest income has become an important factors to market performance; The current listing banks can't represent best financial results and efficiency; foreign investors as strategic investors have not changed company's performance dramatically.