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The Ownership Structure Of Commercial Banks, The Interaction Between Governance And Capital Structure And Its Impact On Competitiveness,

Posted on:2004-05-13Degree:MasterType:Thesis
Country:ChinaCandidate:H P YangFull Text:PDF
GTID:2206360122975845Subject:Finance
Abstract/Summary:PDF Full Text Request
The topic of state-owned commercial banks going public is on debate. But the mechanism that going public can improve the competition capability is not clear yet.In fact 1) Corporation governance scheme and property rights structure can affect each other, corporation governance scheme is the shadow of the property rights structure. Property rights offer a framework for the variety of corporation governance scheme. Corp governance can affect the equity structure. For example,the execute option increase the share of the managers.2) The capital structure have effect on corporation governance, because the capital structure make the link of principal-agent longer. Capital structure decide who own the control of the banks, on the others hand, corporation governance rebound on the capital structure. The shareholder and manager, even creditor may decide how to finance from financial market, hence decide how to change or keep the capital structure.3) The interaction between equity structure and capital structure exist. Ignoring the factors of regulation, initial capital structure determine the equity structure. Meanwhile, equity structure determine the financing model.The property rights structure corporation governance scheme and capital structure can all affect the competition capability respectively. And because of the interaction effect, these three factors can affect the competition capability both directly and indirectly.Most evaluating indices are affected by these three factors. In these three factors, the property rights structure dominant the other two factors. The lack of competition capability of Chinese state-owned commercial banks is basically due to the three factors. So the conclusion is that we should adjust the property rightsstructure of the state-owned commercial banks, on the basis of which we can adjust the other two factors.
Keywords/Search Tags:property rights structure, corporation governance scheme, capital structure, state-owned commercial banks going public
PDF Full Text Request
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