| With the acceleration of financial globalization and the removal of barrier among financial markets, the boundaries between banks and banks, banks and non-bank financial institutions increasingly blurred, the competition of the international market was more and more fierce. Various nation's commercial banks faced with major opportunities and challenges. In order to seek new profit growth point, enhance their competitiveness, various nation's commercial banks begun to establish innovative financial services business, thus increasing their business risk and the capital structure presents an unreasonable phenomenon. The outbreak of the global financial crisis in 2008 increased the risk of capital structure, the world's financial system were in turmoil, many commercial banks decreased profitability, or even went bankrupt, while China's commercial banks had also been a huge impact on the capital adequacy ratio . In the future of the macroeconomic situation, it's necessary to supply bank capital.Therefore, this paper firstly analysis the determinants of bank capital structure. The research of China's commercial banks capital structure and the optimization will help to improve the effectiveness of capital adequacy regulation, maintain domestic banks and financial systems to stability, and it will be good to reform management system of commercial banks and improve corporate governance. In addition, this article from the standard theory of capital structure and bank characteristics starting to study the determinants of capital structure, it do help to define the relevance of the differences of the standard capital structure theory and bank capital structure theory.Firstly, in this paper, from the perspective of the market environment, capital regulation, bank competition and the country differences ,concluding and summarizing on the bank capital structure of foreign research ,from the aspects of mechanisms for commercial banks to add capital and the choice of capital structure and governance and other aspects summarized the bank capital structure of domestic Research。Study found that there are still some deficiencies at home and abroad , mainly for the follows : Selection of explanatory variables being , usually representative of the capital structure of assets and liabilities rate,not considered high-risk characteristics of banks and the introduction of capital adequacy ratio,therefore they are not banks and enterprises in general distinction。The selection of the explanatory variables,usually chosen was the standard capital structure factors such as size, growth, collateral value, profitability, income tax, etc ,without the combination of the special structure of the introduction of bank capital related variables.To compensate for these shortcomings, the paper summarized the the theory of decisions on commercial banks'capital structure, and followed the logic progress of the Basel Capital Accord, summarized the definition and constitution of commercial banks'capital. Then established some theoretical models of commercial banks'capital structure decision-making, on perspectives of standard capital structure and banks'features, the paper summarized the factors of the commercial banks capital structure to conduct a theoretical analysis, on the basis, combined with the principle that data-accessing should be available, the data of the following indicators such as bank size, growth, collateral value, income, assets and liabilities, foreign shares, profitability, inflation, economic growth are collected, at the same time, in order to avoid data heteroscedasticity and autocorrelation, the software Eviews6.0 was used to screen and remove the indicators, at last six indicators were reasonably selected to act as explained variables, such as bank size, growth, collateral value, the actual income tax rate, non-performing loan ratio and the foreign shares, and the equity capital ratio as well as capital adequacy ratio acted as the explanatory variables representative of the capital structure, on the relationship between explained and explanatory variables, built an empirical model, and because the 14 listed commercial banks in our country, namely Bank of China, Industrial and Commercial Bank of China, China Construction Bank and Bank of Communications, CITIC Industrial Bank, Huaxia Bank, China Merchants Bank, Minsheng Bank, the Shenzhen development Bank, Pudong Development Bank and Industrial Bank, as well as Beijing, Nanjing, Ningbo banks, their assets and liabilities accouts for Commercial banks more than 70 per cent, thus selecting the listed commercial banks is very representative and do great for the research on other commercial banks. This paper used China's 14 listed commercial banks'data from 1997 to 2008(panel data) to conduct a multiple regression analysis by Eviews6.0 with a fixed effect model, finally concluded: (1) Bank size and capital structure existed a negative correlation that large banks with high credit, low business risk and cost of debt, preferred debt financing, thereby reducing the ratio of bank equity capital. Moreover, the risk-weighted assets of large-scale banks were usually higher, which in turn increased the denominator of the capital adequacy ratio. (2) Growth was positively correlated with capital structure indicated that a well growing bank's stockholders preferred equity capital financing in order to avoid creditors, thereby the bank's equity capital ratio and capital adequacy were increasing. (3) The collateral value of assets and equity capital ratio was positively correlated but had a negative correlation with the capital adequacy ratio. (4) Income tax and capital structure was negatively correlated. As the tax avoidance of debt financing, the higher income tax rates, the banks more inclined to use debt financing to avoid tax-induced decline in profitability, so the lower the equity capital ratio would become. Meanwhile, the high income tax rates decreased banks'profitability then reduced the bank's internal financing ability, which made the capital adequacy ratio also decline. (5) Non-performing loan ratio and capital structure were negatively correlated. It showed that the higher the rate of bad loans, the more bank capital would be eroded, and thus equity capital ratio and capital adequacy ratio both declined. (6) foreign shares and capital structure is positively related. Foreign banks positioned our commercial banks in the way of being shareholders, added capital to commercial banks, thereby increased the equity capital ratio of commercial banks and capital adequacy.Finally, according to the empirical analysis of commercial banks capital structure, pointed the questions existing in the capital structure of China's commercial banks, such as internal financing was not ideal, the ratio of deposit to debt capital was too high,and the rate of non-performing loans was relatively higher, also,the capital adequacy rate was in the decreasing state after crisis. After this, the paper combined with theoretical analysis, finally presented some suggestions to improve the deficiencies, which included expanding internal accumulation to increase actual receipt capital, improving risk warning to reduce the rate of non-performing loans, completing the work of attracting investment and strengthening government supervision, expected to provide theoretical support and real basis for the decision of China's commercial banks.Throughout the article the main methods used in three ways: (1) Qualitative analysis combined with quantitative analysis. Firstly, considering home and abroad studies and the actual situation in our country, from the two perspective of the standard capital structure and banking features, identified all the factors affected commercial banks capital structure to conduct a qualitative analysis, then combining with the principle of availability of data, selected a few typical factors for quantitative analysis. (2) Normative analysis combined with empirical analysis. At first, according to domestic and foreign research, made a preliminary estimate for The changes in China's commercial banks capital structure. On this basis, making use of the data collected, established a panel data model of Commercial Banks in the determinants of capital structure, used Eviews6.0 to conduct a multiple regression analysis. (3) Comparative analysis. In this paper, longitudinal analysis was used to analyze the feature as well as deficiencies or China's commercial banks capital structure, making the conclusions more convincing. The papers'innovations: (1)Following the logic changes of capital structure in the Basel process, clearly defined the commercial bank capital and the structure of capital, in the basis analyzed the particularity of commercial bank's capital structure different from the general business, and built relevant theoretical model. (2)Disscussing the determinants of commercial capital structure from the perspectives of standard capital structure and bank features, combined with the principle of availability of data, selected the equity capital ratio and capital adequacy ratio as depended variables, bank size, growth, collateral value, income taxes, non-performing loans ratio and the proportion of foreign shares and other indicators as explanatory variables, built an empirical model, use Eviews6.0 panel data methods to conduct a regression analysis, and according to empirical analysis pointed out the problems existed in the management of China's commercial banks capital structure, finally proposed to extend the internal accumulation and increase retained earnings and so on.However, despite this paper process as systematic and perfect as possible in the research, but because the time span of the sample data and the limit of individual level, there are still many inadequacies in this article, I hope that scholars will be improved: first, in the empirical analysis tools, due to the limited capacity of my time, this paper is Eviews6.0, and it's more convincing and authoritative to use Stata to do panel data analysis, so I hope that scholars can learn to use Stata tools. In the respect of empirical analysis, because the financial data a few years ago of non-listed commercial banks is not publicly, I selected listed commercial banks as representatives to study. In order to observe more fully the impact of the various factors on the capital structure of Chinese commercial banks, you can collect and analysis the data of all commercial banks in China, the result is more valuable. Second, in order to reflect the characteristics of the times better, the import and export trade of this variable should be introduced. And due to the limitation of data collection, this article will remove the variable. I hope more and more commercial banks to handle import and export trade business in the future, and in the situation of the disclosure of banks data more comprehensive and complete, this variable will be into the scope of influencing bank capital structure. In addition, you can continue to deepen the theoretical study and provide more ideas for the optimization and business performance improvement of China's commercial banks capital structure in the base of empirical research. Thirdly, the financial information of conducting quantitative analysis are from published annual reports, but I can not obtain the decision-making process within bank financing, it can only study the perspective as an outsider, it's no doubt that it will differ from the truth. |
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