Relationship Of Listed Banks Capital Structure And Operating Performance

To fulfill WTO commitments, China’s financial market has been fully liberalized bythe end of2006. Full opening of China’s banking market will face more intensecompetition from the global financial market. For our backs, how to survive and achievelong-term development in the fierce competition is particularly important. The bank’soperating performance is a concentrated expression of competitiveness; it reflects itsprofitability, capacity development and the ability to follow sustainable use andmanagement of assets. Therefore, China’s banking sector wants to achieve competitiveadvantage in the global financial market background, to improve its operating performanceis safe and effective solution. This paper aims to study China’s listed banks’ capitalstructure affect its operating performance and to propose how to optimize the capitalstructure of China’s listed banks to improve their business performance measures on thisbasis. Backs are different from general business; they are special business by debtmanagement and operating money. Theoretically speaking, the factors that affect thecapital structure of China’s listed banks are mainly two aspects, internal factors, includingthe size of the bank’s assets, capital structure, profitability and capital adequacy ratio;outside factors, including the People’s Bank of China release of monetary policy,development of capital markets, interest rate fluctuations as well as economic developmentcycle. The paper based on the capital structure and operating performance to redefine themeaning, we use affect the banks’ capital structure internal factors. The paper furtheranalyzes the problems of the capital structure and operating performance of China’s listedbanks.Secondly, use the data collected to analysis the relationship between capital structureand operating performance of China’s listed banks, This paper selected16listed banks inour country about the data between2008-2012(data are from the annual reports of banks),multiple linear regression model, using SPSS (IBM SPSS Statistics Version21) softwareregression analysis obtained through empirical testing in this paper, the relationshipbetween the selected data indicators. Then, the empirical results obtained from therelationship between China’s listed banks’ capital structure and operating performancebetween a Summary. Finally, according to the conclusions presented in order to optimizethe capital structure of listed banks and to improve our operating performance and effectivesuggestions.