Empirical Study On The Relationship Of China Listed Banks' Capital Structure And Performance

By the end of 2006, the financial sectors of our country had been absolutely open to the world. Our country had cancelled all the restrictions on the establishment formation of ownership and the right to operate, including the restriction of ownership, and allowed foreign banks to provide RMB business and treated them as national banks. Foreign banks have many advantages towards china' s own banks, among which the capital structure is a very important point. At prsent, Listing is a necessary way for the commercial banks to develope. So ,in this macroeconomic environment, the Study of the relationship of listed banks' s capital structure and their operation performance has a great actual significance for the listing commercial banks .There are lots of researches on the relationship of listed company's capital structure and performance, but the research of the relationship of that on the banks is relatively very little. Furthermore, most of the papers use ROE to measure the banks' performance. But the banks performance includes not only the profit-making ability but the liquidity, safety, and growth are also the reflection of commercial banks' performance.So I have learned from their analysis methods and use the method of factor analysis, choose 4 main component from 6, and use their own contribution as the weight, in the end we obtain a indicator to measure the whole performance of banks. The empirical results is:The ratio of stated-shares and the listed banks' performance showed positive correlations;The ratio of corporate shares and the listed banks' performance showed a significant negative correlations;The shareholding ratio of outstanding shares and the listed banks' performance showed a significant negative correlations;The shareholding ratio of first major shareholder and the banks' performance showed a significant negative correlations;The shareholding ratio of the top five major shareholder and the banks' performance showed a significant positive correlations; The shareholding ratio of the top ten major shareholder and the banks' performance showed a significant positive correlations;The indexes of top five and top ten shareholders' Concentration and the listed banks' performance did not show any correlation. In the end, We also analyze the reason for that on this basis and make some policy recommendations on improving china's commercial banks' capital structure.