An Empirical Study Of Ownership Structure And Business Performance: City Commercial Banks In China

The mid-1990s,the country in order to solve the urban credit cooperatives exposedmany problems in the process of development, decided on the basis of the formation ofcity commercial banks.Its main task is to provide financial support for the localeconomy and small and medium-sized enterprises.After two decades of development,the city commercial banks has become the group with strong market awareness andability to innovate in the Chinese banking system, and play an important role inpromoting the economic development process.Commercial banks business performanceis not only related to its own survival and development, but also to the optimalallocation of financial resources will produce important influence.However, comparedwith the large and medium-sized commercial banks, city commercial banks businessperformance is obvious gap, investigate its reason, unreasonable ownership structure isone of the important factors.While many city commercial banks have also established acorporate system of corporate governance structure, but unreasonable ownershipstructure to some extent, restrict the effectiveness of corporate governancemechanisms,and play a direct impact on improving the business performance of citycommercial banks.In this background, based on the city commercial banks, theresearches on the relationship between ownership structure and business performance,optimizing ownership structure, city commercial Banks to improve businessperformance to provide reference and reference.Firstly, the theory of ownership structure and business performance are discussed,specifically addressed the relationship between ownership structure and businessperformance.Then, in-depth analysis of the current situation and problems of China’scity commercial banks ownership structure,and analyze and evaluate its businessperformance from the profitability, business growth, asset quality and solvency.On thisbasis, by constructing panel data model to empirical analysis the influence of ownershipstructure on the business performance.Combine empirical results, articles anglescorresponding countermeasures and suggestions from optimizing ownershipconcentration focus, appropriately adjusted equity attribute structure, timelyintroduction of strategic investors and strengthen the supervision of shareholder behavior,in order to realize the city commercial banks to improve the businessperformance.The innovation of the article:First, previous studies mainly focused on the bankingsector to large state-owned commercial banks and medium-sized joint-stock commercialbanks, so the paper selected city commercial banks as research subjects has someinnovative.Secondly, this paper selects more than30city commercial banks’management data from2008to2012, represents the latest development of the banks andthe trend, the study has better timeliness.Third, by contrast with the medium-sizedjoint-stock commercial banks, city commercial banks on the operating performancewere evaluated longitudinally.In the process of follow-up studies, the author build abusiness performance index system from the profitability, business growth, asset qualityand solvency, and making use of the analytic hierarchy process (ahp) to get thecomprehensive indicators of business performance, compared with the existing researchis also different.