The Commercial Bank Ownership Structure And Operation Performance

As special enterprises that operate money commodity, commercial bank's capital structure not only decides banks' value and fund raising cost but also bank's capability to resist and resolve the risk, and the profit target decides the importance of the operation performance. In recent years, China Banking industry develops rapidly, and lots of banks open, especially city commercial banks. The competitions between banks become more and more intense. Since China financing industry fully opens up in 2006, more than 40 domestic corporate bodies are set up by foreign investment banks. The influx of foreign banks will put great pressure on China commercial bank. To win the competition, operation performance should be improved. These years, China commercial banks reform their ownership structure and accelerate listing, and up to 2010, there are 16 listed banks in A-share market. The capital structure of the commercial banks, especially ownership structure, attracts more and more concerns. Researching the effects that ownership structure has on operation performance has theoretical and practical significance to optimize capital structure, low the risk and improve operation performance for newly listed and unlisted commercial banks.In this paper, listed commercial banks are taken as samples and choose 12 indicators from their profitability, liquidity, security and development to evaluate the operation performance in 2007-2010 comprehensively though factor analysis method, based on listed banks' ownership structure and operation performance. Based on this, take comprehensive scores of the sample factors as explained variables that measure operation performance, and take indictors, such as the largest shareholder's ownership concentration, the first 10 shareholder's ownership concentration and state-owned share proportion, as explanatory variable. Analysis the relationship between commercial banks'ownership structure and operation performance through regressive model, and the results show that, the largest shareholder's share proportion factor, the first five shareholder's share proportion factor and the first ten shareholder's share proportion factor are all negative and pass the significance testing, but explanatory capability is low, so there is a negative correlation between ownership concentration and listed banks' performance, and in ownership nature, there is a positive correlation between corporate bodies share proportion and listed banks' performance, but the relationship between state-owned share proportion and banks' operation performance is not clear.