The Empirical Research On Commercial Bank’s Capital Structure And Business Performance In China

Capital structure and operating performance has been discussed in academia for a long time. As Commercial banks have special capital structure and the economic and social status, it is worth studying Commercial banks’s capital structure and operating performance.For the particularity of the commercial banks, to consider two aspects of the commercial bank’s operating performance, profitability and risk profile (asset quality). The profitability selected net profit indicators, the indicators of the risk profile of selected non-performing loan ratio. The ordinary capital structure generally refers to the proportion of equity capital and debt capital. For the division of the capital structure of commercial banks, Basel Ⅱ perspective, the core capital and supplementary capital and supplementary capital scale shall not exceed100%of core capital. The same time, the commercial bank’s core capital structure includes the ownership structure of the general industrial and commercial enterprises.In this paper, the2005-201014listed commercial banks, panel data to analyze the relationship between capital structure and operating performance of the commercial banks. By the EVIEWS measurement software for data processing, the choice of model by F test and the Hausman test, the random effects model, fixed effects model, chosen in the mixed-effects model the fixed effect model. Net profit and non-performing loan ratio of commercial banks of their capital structure variables to the regression analysis. For optimizing capital structure and improve performance based on the results of empirical research, gives the following suggestions:increase and optimize the commercial bank subsidiary capital, the optimization of core capital to accelerate the innovation process of commercial banks, the establishment of a sound institutional environment.The data itself is difficult to obtain commercial banks, coupled with China’s major listed banks in a short time to market and the small number of listed banks, resulting in the panel data of the selected sample size less than normal. In addition, the specific structure of data in commercial banks’ core capital and supplementary capital is difficult to find complete, it is not possible to do the detailed structural analysis. In a later study, I hope to make the data more comprehensive and effective.