The Research On Effects Of Commercial Banks’Equity Balance、ownership Structure On Business Performance

Since China’s accession to the World Trade Organization in2001and the reform of non-tradable shares in2005, and at the same time, with the high-speed economic development and financial internationalization gradually realized, our country has always been strengthening the financial system in face of increasingly fierce domestic and the challenges of foreign banks occupying China’s financial market.As the main body of promoting our country’s economic developed rapidly and making the nation’s economic policy implemented,only commercial banks in China must make capital base strong,have advanced management experience,improve the corporate goverance structure,strengthen supervision mechanism,they can calmly deal with the complexed economic situations.As the core of corporate governance structure,equity structure decides the arrangement of the internal governance structure,and then the performance of company through the corporate governance mechanism.Therefore in order to realize the operation of company effectively and improve the retained profits of company,the best way is to establish a reasonable equity structure.Based on the characteristics of China’s commercial bank’s ownership structure,this paper starts from the structure of equity balance degree.Considering the desirability and integrity of data,we select the revelant data of14listed banks from2006to2011except two banks of ABC bank and China Everbright Bank, which were listed in2010as the research sample.Then it analyzes the present situation of their equity structure and through the empirical analysis of relation between the equity structure and performance of company.According to the result of model,this paper finally put forward to improving the equity structure degree to protect the shareholders’ related interest except the first big shareholder,and at the same time strengthening the external supervision of commercial banks,so as to perfect our country’s commercial bank ownership structure and corporate governance mechanism.