Correlation Study On The Relationship Between The Capifal Structure Of Commercial Banks And Their Value

As one part of financial market, Commercial banks are indispensable for the modern financial system. It plays an important role in the sound and rapid growth of national economy. As China’s financial market reform goes on, and the supervision of bank capital becomes harder and harder, China’s commercial banks are facing more and more challenges. The optimization and adjustment of the capital structure of commercial banks, as an important standard to measure the quality of bank assets, relates to the sustainable and steady operation of commercial banks. And the capital structure of commercial banks is the key factor of the value of commercial banks. Whether we can find the relationship between the capital structure of commercial banks and their values, and put forward reasonable optimization path of commercial banks’capital structure, is a huge challenge for improving the commercial bank’s enterprise value.First, this paper gives a theoretical analysis about the relationship between the capital structure of Chinese commercial banks and their value, and expounds the evolution and current situation of commercial banks’capital structure in china. Then this paper makes an empirical test on the relationship between the capital structure of the Listed Commercial Bank15and their value with the date from2008to2013, and establishes the regression model of banks’capital structure and their value, the empirical results show that:1. The shareholding proportion of the largest shareholders is negatively related with the value of commercial banks with no significance.2. The nature of the largest shareholders is positively related with the value of commercial banks with no significance.3. The proportion of supplementary capital in bank capital is positively related with the value of commercial banks.4. The asset size is positively related with the value of commercial banks.5. The capital adequacy ratio is negatively related with the value of commercial banks with no significance.According to the empirical results and the existing problem on the capital structure of Chinese commercial banks, this paper puts forward recommendations to optimize the capital structure of Chinese commercial banks from five different aspects:the government supervision, make-up mode of the core capital and its internal structure, the supplementary capital ratio, asset size and the capital adequacy ratio. So that the managers can improve the enterprise administration structure of Chinese commercial banks, strengthen the ability of capital management, advance the quality of asset, and eventually achieve the sustainable and steady development of Chinese commercial banks.