The Research On Effects Of Listed Commercial Banks’Capital Structure On Operating Performance

Capital is the basis of the commercial banks’ management and the assurance to resist risk,the reasonable capital structure has a vital role on achieving the financial goals and stably operating of commercial banks.Commercial banks’ operating performance is the comprehensive reflection of the commercial bank management ability,profit ability,debt paying ability,capital operation ability, asset security ability and so on.The impact on the capital structure of commercial banks has impacts on its operating performance,which mainly reflected in the following aspects.Firstly,capital structure can directly affect the operating performance,because of its directly decisions to bank financing way, structure,cost and risk. Sencendly,capital structure indirectly affect business performance,because the capital structure affect bank governance structure and the bank governance structure affect the the operating performance. So we can get a conclusion that the sencend aspact has a bigger impact since the bank capital is highly leveraged. While,our country is now in a complex economic environment and the commercial bank capital structure and business performance has their own characteristics,so that analyze the capital structure of Chinese commercial banks and research on our country commercial bank capital structure impact on business performance are important for optimizing the capital structure and improving operating performance.At the beginning,this paper introduces the domestic and foreign research on capital structure and business performance,redefine the definition of commercial bank capital structure and introduce the theory related to commercial banks capital structure,which include traditional theory of capital structure,modern capital structure theory and the new capital structure theory.Then,in view of the specificity of the listed commercial banks in China,introduces the characteristics and the methods to measure of their capital structure and evaluate the capital structure from three aspects:the core capital, supplementary capital and capital adequacy.Next,combining with general performance measure as well as our country commercial bank performance evaluation system,evaluates the bank performance from four aspects,including the financial benefits,asset security conditions,debt paying ability and development capacity conditions.Introduces the factor analysis method,constructed a comprehensive evaluation of bank performance.After introducing the theory analysis of the mechanism how our country commercial bank capital structure affect the business performance,select the relevant data of16listed commercial banks in2009—2012,and establish the estmultiple linear regression model in order that analysis how commercial bank capital structure influence on business performance.finally,draw the following conclusion:(1) Relatively concentrated equity ownership structure can promote the bank performance;(2)The first big shareholders nature is negatively related to the business performance;(3) The proportion of tradable shares has nothing to do with the business performance;(4)The proportion of supplementary capital is positively related to the business performance;(5) the capital adequacy ratio is is positively related to the operating performance.In conclusion,this paper argues that although after years of reform and development,China’s banking industry has made great achievements,the capital structure remains to be perfected,also the business performance remains to be improved.Therefore,combinating the theoretical research and the results of empirical analysis,from the perspective of optimizing capital structure,put forward several suggestions to improve the operation performance of commercial banks in China,such as optimizating the core capital structure,increasing the proportion of subsidiary capital,strengthenning the supervision of banks’ capital and perfecting China’s capital market.