Ownership Structure, Financial Ecology And City Commercial Banks Performance

Effect of ownership structure on the performance of city commercial banks unanimously by the academic world wide attention。 Almost of the existing research get ownership structure as explanatory variables directly to analyze the performance of CCBs, but ignore the different effects that ownership structure on the performance of CCBs that due to the financial ecological environment of the big differences between regions in China. In this paper, we use data of China’s CCB and regional financial ecological environment from2006to2011, The financial environment as the starting point. From the perspective of the financial ecological, the paper empirically studies the impact of ownership structure, financial ecology on the CCB performance.In the first chapter, we describe the background and significance of the topic and give the research methods and arrangements for this article. In the second chapter, we combs, analysis the theory of corporate governance, Commercial Bank’s governance, Financial ecology environment, and propose research topic of this article. We raise that it should be concerned about the impact of external management of the financial ecological environment of CCB when we study the impact of ownership structure on the performance of CCB. In the third chapter, we establish the theoretical model of the ownership structure, financial ecology and CCB’s performance to characterization relationship between of ownership structure, financial ecological environment and CCB’s performance, In turn, step by step analysis relationship between of the financial legal environment and CCBs’ performance, relationship between of the Financial legal environment, government intervention and CCBs’ performance, relationship between of the Financial legal environment, government intervention, credit culture and CCBs’ performance. We prove the research propositions mentioned in this article from a theoretical model. In Chapter4, we empirically analysis the relationship of ownership structure, financial ecology and CCBs’ performance. Based on the2006-2011sample of90CCBs in China, we empirically study the relationship between ownership structure, financial ecology environment and CCBs’ bad loan ratio, the total return on assets. On this basis, it is believed that ownership structure, financial ecological environment affect the performance of city commercial bank through four channels such as related loan, loan concentration, the term structure, loan industry distribution. Based on the above finding, we explore influence on the four kinds of credit behavior of CCB that ownership structure and financial ecological environment play. Chapter5is conclusions and policy recommendations section of this article. Carding a summary of the conclusions reached by the institute of this article, and related policy recommendations.The conclusions of the study described below:CCB that directly or indirectly controlled by the Government often have a higher proportion of non-performing loan, there is significant positive relationship between the largest shareholder of the holding capacity and CCBs’ bad loans, and also between ownership concentration and non-performing loan ratio. The CCB that lack of checks and balances, concentrated ownership structure has more non-performing loan. But improving financial ecological environment conducive to weak these effects. Besides, it is hard for the CCBs that have stronger the first control of the shareholders and more concentration of the top ten shareholders, Improving financial ecological environment conducive to weak these effects all the same. The government’s "grabbing hand" play a leading role in a good financial ecological environment of the region, while the government’s "Helping hand play a leading role for in the poor financial ecological environment areas. This study found that CCB’s bad loans is accumulated largely because of the loan term structure, industry concentration distribution, no significant relationship with the related loan.It is believed that the CCBS have more related loans whose the largest shareholder of the state is owned properties and hold more competent, but the ownership structure of checks and balances can reduce the incidence of non-performing loans. Whereas improving financial ecological environment conducive to weaken the influence of the associated factors on CCBS’loans. Concentration of loans have a catalytic role of CCBS’bad loans accumulated, and the first major shareholder of nature, ability to check and balance to largest shareholder have a significant impact on the concentration of city commercial bank loans.Ownership structure, financial ecological environment also create the effect on the term structure of CCBS’loans, lending industry of the distribution. The CCBs would significantly increase the medium-and long-term loans whose the largest shareholder is the state-owned properties. Compared with the financial expression of the environment is poor regions, the CCBs will reduce the medium-and long-term loans of that is located in the region of good financial ecological environment, controlled by the government. the CCBs significantly reduce loans for wholesale and retail sectors, increase loans to the property sector.This article derives some useful conclusions that is of positive policy implications:Should focus on financial ecological environment construction, it is of positive significance to building, improving financial ecological environmentOptimal regulation of CCBs. When regulating the CCBs, the authorities should not focus only on CCB itself, but should be more concerned about the effect on CCBS’risk from local government.Local governments on CCBs should "has the some things but not others".CCBs should pay more attention to dealing with the relationship between with local government in the course of development...