Empirical Study On Listed Commercial Banks' Ownership Structure And Performance In China

1,Content and Main Points Involved:In recent years, many scholars have researched on the relationship between company's ownership structure and its business performance. However, due to difference among the size,nature of sample and research methods,conclusions are not of the same.There're almost no papers concerning banks'ownership structure,but as an important part of financial institutions, especially in transition process of planned economy to market economy in China, banks'ownership structure,especially listed banks'ownership structure is different from other listed companies and financial institutions.This paper mainly researches listed banks' ownership structure,performance and relationship between the two indicators above. Then this paper hopes that though offering relevant propositions, it can make banks ownership structure more reasonable and performance increased.Taking into account the typicality and representativeness, this paper selects four state-owned commercial banks(Industrial and Commercial Bank of China, China Construction Bank,Bank of China, China Communication Bank)and five joint-stock commercial banks(Shanghai Pudong Development Bank, Huaxia Bank Co.Ltd, China Minsheng Bank Co.Ltd, China Merchants Bank Ltd,Shenzhen Development Bank)as sample and separately make statistical research on the nature, liquidity, concentration of their ownership structures.Firstly,the nature of the banks'ownership structure relates to share-ratio of different shareholders, such as state-owned shares ratio,legal personal shares ratio and foreign shares ratio.Secondly, liquidity of banks'ownership,or called phenomenon of the split share structure,existence of which is mainly due to historical and institutional reasons of different commercial banks in China,the paper makes statistical description and comparison on it.Thirdly, as for Banks'concentration degree, this paper make statistics on sample banks'top five and top ten shareholders'holdings and then compared.There are many methods for calculation of bank's performance, mainly including financial indicators method, cutting-edge analysis,input output departure and Tobin Q value method. In order to solve problems of data collection and applicability, this paper adopts principal component analysis method which takes together of banks'financial indicators of profitability, operational capacity, solvency, capacity development, risk and other aspects to measure business performance of commercial banks.This method is more comprehensive and has higher reliability of calculations, widely used by experts and scholars. According to principal component analysis, this paper calculated the performance of the sample banks fluctuating within a range of about 0.68-2.08, the mean of performance is 1.274616, the standard deviation is 0.366167, the maximum is 2.088661,the minimum value is 0.684973,and the mid-performance is 1.705. From the calculation results, the performance in 2007 has more substantial improvement than in 2006, there were five banks'performance falling in 2008,of which Shenzhen Development banks reduction was the most apparent at around 27.8%.Finally this paper adopts Eviews software to make regression analysis, respectively using the sample banks'ownership nature, the sample bank's liquidity, the sample banks'concentration degree as independent variables,the sample banks'operating performance as dependent variable to build regression models, and thereby obtains:(1)As for listed commercial banks'ownership nature, there is weak inter-inverted "U"-type relationship between state-owned shares ratio and banks' performance. There is no relationship between the legal person shares ratio, the largest shareholder, the foreign stocks or the bank's performance.(2)With regard of the liquidity, weather existing stocks split,as well as on which degree of the strength of the ownership liquidity of banks do not have impact on performance.(3)As for the degree of concentration of ownership, the listed commercial banks'largest shareholders'ratio and bank's performance is irrelevant; The top five shareholders and top ten shareholders'shares concentration degree and operating performance does not exist a linear relationship, but exists a weak correlation.At last, through analysis above, this paper offers propositions as follows: Commercial banks should reasonably control ratio of state-owned shares by 43.19%. We should encourage commercial banks to increase insider ownership, should truly play the role of split share structure reform, and should have a reasonable control of concentration degree.2,Major Innovation Points:(1)Chosen Theme Point of View:This paper research the banks'ownership structure and performance, which is novel and rarely concerned before.(2) Research Methods:This paper takes provision rate and the capital adequacy ratio into consideration, which are as risk indicator to make the indicators involved more comprehensive and the statistic results more credible.