Empirical Study On Eva's Impacts On Listed Banks' Capital Structure

As the development of foreign banks in our country, our commercial banks face up with heavy competitive pressures. Therefore, the domestic banks should give a deeply analysis to their own reasons for the purpose of striving to improve their competitiveness and preparing to meet the challenges. For above reasons, this thesis studies the relationship between the bank capital structure and the ability to create value.First, the thesis discussed the background and significance about the relationship between the capital structure of our listed banks and economic value added. This thesis described the research literature at home and abroad, and the content and research methods. Then, this thesis described the theory of capital structure and the special calculation method of banks'economic value added. What's more, it discussed the drivers factor of the banks'economic value added, and then analyzed the composition of our listed banks'capital structure. On this.basis, the thesis analyzed the theoretical basis between the capital structure of listed banks and EVA.On the basis of theoretical exposition about the value relevance between our listed banks' market value and economic value added, this thesis studied the correlation between economic value added and stock price's change of banks, found that the relevance exist indeed between economic value added and the market value of listed banks, and this correlation index is higher than the index between the traditional performance evaluation index-earnings per share or return on net assets and banks'market value.The thesis selected 14 listed banks in the period of 2005-2009, formed the sample of unbalanced panel data, empirical researched the relationship between economic value added and listed banks'capital structure, also studied the correlation between the drivers factor of economic value added and listed banks'capital structure. The empirical results showed that: First, economic value added index which represent the true value of listed banks does show a significant correlation with the debt ratio of listed banks. And it is a significant positive correlation between them. Thus, the thesis produced an conclusion:our listed banks can strengthen the ability of creating value by means of increasing the debt ratio nowadays. Second, the listed banks take into account profitability, asset quality, operational capacity, capital management, security capabilities, bank size, growth and the level of taxation when they make financing decisions. Finally, so as to improve the competitiveness of our listed banks, the thesis gave some proposals which optimize the capital structure of our listed banks according to the results of empirical analysis.