A Study On The Impact Of Ownership Structure On The Performance Of China 's Urban Commercial Banks

Third Plenary Session of the party’s eighteen proposed to actively develop the mixed ownership, pointed out that the STATE-owned capital, collective capital, non public capital, such as cross shareholding, mutual integration of mixed ownership economy is an important form of socialist basic economic system. In our country, the development of mixed ownership undoubtedly is mainly for the reform of STATE-owned enterprises, to prove safety of STATE-owned enterprises unreasonable ownership structure and corporate governance structure. The ownership structure is the basis of corporate governance, which determines the enterprise’s decision-making management mechanism and incentive and restraint mechanisms, which determines the behavior of the enterprise and business performance. If the ownership structure can really be optimized in the reform of the STATE-owned enterprises, it will be a key step for the STATE-owned enterprises to move towards the market and to improve the internal management of the enterprise.The purpose of this paper is to study the impact of the ownership structure of China’s urban commercial banks on the operating performance, and to provide empirical analysis experience for the further optimization of the urban commercial banks’ equity structure. Specifically, this paper study the relationship between ownership structure and city commercial bank performance, using the dynamic panel model and GMM estimation, with research samples of 104 city commercial banks during 2005-2014. The research found that the degree of ownership concentration has a significant negative impact on the performance, the ownership balance has a significant positive impact on the performance, while the national holding or not on the performance of the city commercial banks is not significant. In addition, the board size has a significant positive impact on the performance, while the proportion of independent directors has a significant negative impact on the performance of city commercial banks.The innovation of this paper is mainly reflected in:first, the selection of research objects and research samples. Subject to data limitations, previous research mainly to the listing Corporation and listed banks as the research object, and the City Commercial Bank of our country as the research object is very few, only this part of the literature in the research sample is also very limited.. The object of this paper is the City Commercial Bank of our country, the sample is involved in 2005～2014 104 City firms, which are distributed in 29 provinces, autonomous regions and municipalities directly under the central government, and a total of 523 samples. Samples in time and geographical span are far beyond the predecessors, with a strong representation; second, empirical model and estimation method of choice. Most of the existing researches use the multiple linear regression method and the least square method (OLS) to estimate, which cannot take into account the individual heterogeneity and the dynamic changes of the relationship between ownership structure and performance. In this paper, using the dynamic panel data model and use difference generalized method of moments estimation (difference GMM) analysis, to control individual heterogeneity, alleviate multi-collinearity and improve the degrees of freedom, and also consider the influence of variable lag effect, describing the cross term effects of research objects.