Research On Investment Efficiency And Influencing Factors Of Chinese Listed Banks Based On

In December 2001, China formally became a member of the World Trade Organization. Since then, China’s opening up has become more and more thoroughly. China opened its banking industry in 2006, and a large amount of foreign capital entered China market. Setting up branches in China is the most common way foreign banks used to enter China’s banking market. Along with the development and improvement of China’s market economic construction, China’s commercial banks have taken their first step of raising money in the open capital markets when they complete their IPOs. In the face of fierce market competition, it’s important for China’s listed commercial banks to find the answer of the following questions: How to compete with foreign banks in the capital markets? How to raise funds as much as possible from capital markets? By the nature of banking management, the most fundamental for answering these two questions is to improve the investment efficiency of China’s listed banks. Since the investment efficiency is a reflection of commercial banks’ performance and it decides the Bank’s survival and development, the improvement of the investment efficiency will be helpful for banks to enhance their competitiveness, get more financing opportunities, and reduce funding costs at the same time. Thus, this article makes a deeply research on the investment efficiency of commercial banks through analyzing China’s listed banks’ investment efficiency. Besides, factors that affect the investment efficiency of China’s listed banks are studied so as to improve the investment efficiency of China’s listed commercial banks.On the basis of summarizing related literature home and abroad, this thesis studies the investment efficiency of China’s listed banks with the combing of qualitative and quantitative analysis method. Multivariate linear regression are applied to explore the factors that influence the efficiency of China’s listed banks. This paper is divided into six chapters. Chapter 1 describes research background, research significance and the major research method on the basis of reviews of relevant research literature. Chapter 2 describes relative theories of commercial banks’ investment efficiency and the way to measure efficiency. Chapter 3 is composed of two parts: the first part gives an introduction of the developing history and current situation of China’s banking industry; the second part makes a qualitative analysis of factors that influence listed commercial banks’ efficiency, which lays the foundation for the qualitative study in the fourth and fifth chapters. From the perspective of the static and dynamic state, Chapter 4 evaluates the investment efficiency of China’s 16 listed bank during the period of 2010-2014 by using BBC model of DEA method. The static efficiency evaluation measures the average investment efficiency of each listed Bank in 5 years through analyzing the mean value of the 16 listed banks’ input-output indicators. While the dynamic evaluation studies the change trend of listed banks’ investment efficiency during the period of 2010-2014 in general and compares every listed bank’s investment efficiency year by year. Chapter 5 makes a quantitative analysis of the correlative factors that influence China’s listed banks’ investment efficiency by using the multiple linear regression, from which we come to the following conclusions: banks’ buffers of deposit has significant positive correlation with banks’ efficiency; loan-to deposit ratio has big positive impacts on China’s listed banks’ efficiency; banks’ business performance is found to have no significant effect on listed banks’ efficiency; return on assets influences China’s listed bank positively, but not significantly. Chapter 6 summarizes the conclusion drawn from the study and puts forward some policy suggestions to improve the investment efficiency of China’s listed banks.