Bank Relationship Impact Of Capital Raising Capability And Enterprise Performance

Being the shareholders of the commercial banks is a popular phenomenon of the stock market in recent years. Generally speaking,most of the financial institutions that the listed companies hold stocks are unlisted. In particular, with the overall downturn in2012as well as the policy that State Council encourage and guide the healthy development of private investments being in the implementation, private capital pouring into the banking again emerge. Studies have shown that the listed companies that hold bank stocks for three purposes:diversified investments, stock dividends and capital appreciation. And with the downturn of the real estate market and the rising costs of raising capital, highly capital-intensive real estate companies grow enthusiasm in holding shares of commercial banks. January2014, after Lv Di and Wan Ke got involved in financial industry at the end of last year, another benchmarking enterprise invested3.3billion yuan stake in Hua Xia Bank, which means more and more real estate companies getting long-term strategic layout. In fact, before this trend, Hopson, Xiangjiang Group, Poly Real Estate, Nanjing Hi-Tech, Xin Hu Zhong Bao, Yuexiu Group, has long been involved in the financial vector.For listed real estate companies, holding shares of unlisted banks is to seek for diversified investment needs or to short-term financial investments based on capital appreciation,but also as for a long-term arrangement in advance? Besides, in2004, CBRC introduced the’association of commercial banks and shareholders with internal transactions management approach’. Though there are restrictions on related party transactions, it is difficult to effectively prohibit listed companies from seeking any additional interest from those banks. Accordingly, the listed companies also stake out the relationship between commercial bank for financing motivation to guarantee funds in the case of the capital-chain. This paper discusses the impact of bank relationship for capital raising capability, and confirms that this behavior will help companies to release short-term loan. Furthermore, this paper use the stochastic frontier analysis method to evaluate the technical efficiency of the companies and do empirical research on those factors that influence the technical efficiency and find that bank relationship do not enhance the technical efficiency.