China's Commercial Banks Shareholding Structure And Efficiency Of Empirical Research

The efficiency of commercial banks is the concentrated representation of the competitiveness, the evaluation research of commercial banks'efficiency is conducive to China banking supervision authorities to develop a reasonable policy of financial supervision, and also provides a theoretical support and practical significance to enhance the commercial banks'competitiveness. Ownership structure as a basis of corporate governance mechanisms, its rationality will finally make what impact on the efficiency of the banks? This article is based on the theoretical analysis of the relationship between efficiency and shareholding structure of China's joint-stock commercial banks, setting up empirical research about the relationship between commercial bank ownership structure and efficiency.In order to be able to compare China's state-owned commercial banks efficiency before and after joint-stock reform, and make a compare between state-owned commercial and joint-stock commercial banks, this article will separate state-owned commercial banks and joint-stock commercial banks, and will make a distinction of the significant differences in the year and the market environment, using two methods of sample analysis.The first group is to use China's state-owned commercial banks as the research object, make an analysis of their efficiency from 2001 to 2004, and the second group is to use nine domestic banks as the analysis samples, including one of the analysis of previously state-owned commercial banks which is China Construction Bank and the other selected eight joint-stock commercial banks. We will put emphasis on analyzing 4 years efficiency of this group of samples from 2004 to 2007; we will also consider the ownership structure work on efficiency of these 9 domestic commercial banks. The process of empirical research on the relationship between ownership structure and commercial banks efficiency, we use two-step calculation method: First of all, we use stochastic frontier method measured the cost efficiency of selected samples banks; then select the relevant variables of ownership structure, and to the use of the cost-effectiveness act out by stochastic frontier method as explanatory variable to set up regression model, analyze the relationship that ownership structure of impact on the efficiency.In this paper, the conclusions of the study are as follows: Shareholding structure has a great impact on our joint-stock commercial banks operating efficiency. National shares have a negative impact on our joint-stock commercial banks efficiency; foreign investment as well as corporate shares, participate in joint-stock commercial banks will be to promote the performance of enterprises, the ratio of the largest shareholder and the bank's performance efficiency with the regression results show that the regression coefficient is positive, but did not pass the test of significance; the ratio of the top five shareholders were significantly negative impact bank's efficiency; outstanding shares of banks have a negative impact on banks'performance.Through empirical research, this paper argues that different corporate shares can play the role of checks and balances; has a positive impact to improve the efficiency of banks. And therefore should be appropriate to increase the proportion of corporate shares, allowing a variety of investment involved in joint-stock commercial banks, at the same time, state-owned shares supervision and management functions should be strengthened.