The Influence Of The Capital Structure On The Business Performance Of The Commercial Banks In China

Efficient financial system plays an important role in promoting our country’s economic growth, It can help allocate the assets to the industries and enterprises with efficiency,so the development of the financial industry is a leading indicator of the economic growth.With the accelerating process of economic globalization, and our country’s accession to the WTO as well as the financial industry continues to open, in addition to the entry of foreign banks in recent years, the commercial banks of China are facing increasingly fierce competition, how to survive in this fierce competition and make long-term development is one of the problems urgent to be solved.The operating performance of the commercial banks is the comprehensive reflection of its profitability,the future development,the cash flow and the asset management capacity.Therefore, to improve the operating performance of the commercial banks in China in order to obtain certain advantages in this fierce competition, this article start from the perspective of commercial bank capital structure,to research the relationship between the capital structure and operating performance of the commercial banks, On this basis this article will put forward some countermeasures to improve the operating performance of the commercial banks in China.This article draws on the analysis method of the capital structure and the operating performance of the corporate,researched the relationship between the capital assets structure and the operating performance from three aspects:the ownership structure,the debt structure and the subsidiary capital structure.This article selected the annual data of the 16 commercial banks in China from 2008 to 2014,analyze the commercial banks of China qualitatively and quantitatively.Firstly,on the basis of the domestic and foreign research results, this article defined the connotation of the capital structure and operating performance of the commercial banks.Second,this article analyzed the current situation of the commercial banks’ ownership structure, debt structure and subsidiary capital structure from 2008-2014.Then analyze the operating performance samples with the factor analysis method,and then establish the comprehensive performance evaluation system, and finally regression analysis.The empirical results show that:(1) The ownership structure: The ratio of the largest shareholder was negatively correlated with the commercial banks’ operating performance,the top six shareholders was positively correlated with the commercial banks’ operating performance,the proportion of state-owned shares ownership is negatively related to the operating performance, legal person shareholder has a weak positive correlation with the operating performance,the independent directors proportion is not relevant to the commercial banks’ operating performance;(2) The debt structure: the asset-liability ratio showed a weak positive correlation with the operating performance,the deposit liabilities ratio was negativelycorrelated with the operating performance;(3) The subsidiary capital structure: the subsidiary capital growth rate was positively correlated with the operating performance,the supplementary capital accounted for the proportion of core capital was positively correlated with the operating performance.Besides, the capital size of the commercial banks was also negatively correlated with the operating performance.In summary, this paper argues that although the commercial banks of China developed a lot after the reform, and has already achieved some good results,the capital structure of the commercial banks in China still exist many unreasonable problems,therefore the paper considered from two aspects to optimize the capital structure of commercial banks in China,one the one hand is to optimize and improve the capital structure of commercial banks themselves, on the other hand is to constantly improve the external business environment, so as to improve the commercial banks to be better,more stable and more sustainable.