Operating Radius, Economic Environment, Corporate Governance And The City Commercial Banks Performance

China’s financial industry has always been synonymous with " Xian pin ai fu ", while the Bank of China’s financial industry is the most important part of the natural bank," Xian pin ai fu " feature is extremely obvious. With the " CPC Central Committee on deepening reform of a number of major issues of a comprehensive "had been published in November12,2013,in the Central Committee of Communist Party of China eighteenth third plenary session, reform of the financial sector which first mentioned the need to develop " inclusive finance ", pointed out that the small and micro enterprises, general public and the rural masses must enjoy financial services."Inclusive finance " has been expected to break the proposed financial industry " Xian pin ai fu " situation.To accomplish participation " inclusive finance ",Although need all sectors of the financial industry, but the most important thing is the need for a financial system appears to complement the existing elements. This element is the city commercial banks, because city commercial banks history is more specific, its initially mission is serve the local economy, serving the majority of the grass roots, serving the majority of rural areas. Therefore, the City banks can complement deficiencies of the existing financial system, and is one of the most important elements to make our country achieve " inclusive finance". Therefore, at this stage for the study of all aspects of the City banks is definitely the more the better.Unlike domestic scholars always studies single factor for city commercial banks performance, this paper determined to use descriptive statistics, correlation analysis, multiple regression and other methods, to do a study on the impact of the city commercial banks from the outside to inside. Select the external factors are: the geographic scope of business and economic environment. Internal factors affecting,here choice Culture and equity.The geographic scope of this article refers to the geographical indicators distance traffic between branch offices and headquarters, which is the domestic scholars have not done, and there are scholars in foreign countries have made good use of this indicator results. The final empirical study found that the geographic scope of the City firm’s operating performance is a strong negative impact. Although the expansion of the geographic scope will expand its profit amount, but it will reduce their profitability. The reason for this may be that the city reduced their information advantage and enjoy the support of local government, with the expansion of the geographic scope, such benefits is gradually fade awayIn terms of the economic environment. Paper selected indicators are local per capita disposable income of interaction with the local resident population factor. This factor is due to the choice of these two indicators can be a good representative of market breadth and depth of where bank branches in. Final result also shows for city commercial banks, the economic environment can indeed significantly affect the performance of the city commercial banks, and is a positive influence. The reason may be that, as the economic environment in which the city commercial banks offices conditions getting better, city commercial banks single service cost has been reduced.Because of it’s difficult to quantify Culture, we choose foreign ownership to measure cultural factors. Envisaged that foreign ownership of the city commercial banks culture compared with those of city commercial banks no foreign ownership has been greatly different. The final results show that foreign ownership in the results of the empirical model is a significant negative impact on the performance, But from the early collection of city commercial banks reports, to collate data on the latter, we find that foreign ownership of firms in the information disclosure always better than native commercial banks, and the employee motivation in foreign ownership also better than native city commercial banks too. Therefore, this article is still considered foreign ownership on firm performance in the city should reduce the effect of short-term, but in the long run should be beneficial.In equity terms. Selected the top ten shareholders equity accounting, and the second largest shareholder divided the largest shareholder to measure the impact on the city equity firm operating performance. The final results showed that a high concentration of ownership and the City firm’s operating performance was significantly negative correlation, which may be due to the " grabbing hand " of shareholders; while an equity level of checks and balances and City firm performance is a significant positive correlation, analysis of the reasons is that although the equity portion of the energy balance may make the city commercial banks spent on the fight, but more of a balance equity firm makes the blind expansion of the city has been restricted and the cost has been reduced.Overall, This paper first mention the country’s political authorities published "inclusive finance" policy, pointing out the importance of the City commercial banks for the country " inclusive finance " program completion, point out we must study city commercial banks more and more. Secondly, made a comprehensive description, showing the status of the city commercial banks at this stage from outside to inside. Then, based on the theory of city commercial banks performance, established several multivariate regression model, set from outside to inside:operating radius, the economic environment, foreign ownership, the equity ratio of the four factors, through the model to study the relationship between these four factors and the City firm operating performance.Based on the final results of the regulators has made two proposals. The first should continue to limit the City Bank’s inter-regional development, second is City commercial banks should be encouraged to introduce foreign strategic investors to reduce ownership concentration, and became equity balance. City commercial banks management authority should for the proposed four-point proposal, one should not be blind expansion; Second, the expansion of the location choice should choice area where economic environment are good; Third, should actively introduce foreign strategic investors; Fourth, it should reduce ownership concentration, set a certain equity balances.