Research On The Influence Of Chinese Commercial Banks To Business Performance

With the full opening Chinese finance market, it means that our financial industry wouldaccept more competitions from all over the world. Then, in recent years, small and mediumbanks and loan companies continue to emerge in our country. All this makes our financialindustry competition intensified. Commercial banks dominate the entire financial sector, itsspecificity which in the operating currency business make a reasonable and optimized capitalstructure to against risks, improve operational results has great significance. Therefore, thecorrelation that between the commercial banks’ capital structure and operation performancehas gradually become an important topic of scholars at home and abroad. In addition, both interms of size and quality, listed commercial banks have a great advantage in China’scommercial banks. So, in this paper, our sample is listed commercial banks, the main purposeis to analyze the affect on the operation performance which its capital structure produced.Then based on the results, proposes reasonable proposals to optimize its capital structure.Eventually it is possible to achieve the objectives that improve business performance andenhance comprehensive competitiveness.Commercial banks are special companies which operate monetary asset business,compared with the general business capital structure, its capital structure has own peculiarities.For example, the high debt of capital structure, the dispersion of debt structure, the mismatchof assets and liabilities structure and the restriction of capital ratio. Take these similarities andindividuality. Firstly, in the related research that at home and abroad, this paper carries outcomprehensive and commentary. At the same time, comprehensively summarizes the basictheory of capital structure and uniqueness of commercial banks’ capital structure, alsotheoretically analyzes that how the capital structure of commercial banks influence theirperformance. Secondly, based on the above theory and from three aspects: debt capital, equitycapital, subsidiary capital, analyzes the current situations of16listed Chinese banks’ capitalstructure, analyzes their status of business performance from four dimensions: profitability,security, liquidity and growth. Finally, this paper uses the data of the16listed commercialbanks nearly three years.Through establishing the comprehensive evaluation index system toestimate the value of the business performance in using factor analysis, processing panel datain using EVIEWS software, and selecting the individual fixed effects model. Respectively,conducts the linear and nonlinear regression: performance score as the dependent variable andcapital structure indicators as independent variables.Ultimately，drawing the following conclusions after the above analysis: the proportion ofthe largest shareholder, the proportion of state-owned shares, and asset-liability ratio arerespectively inverted U-shaped to the business performance. The largest shareholder control force, the supplementary capital to core capital ratio, the natural logarithm of the assets’ size isnegatively correlated with bank business performance. The proportion of the top tenshareholders is positively correlated with the bank business performance. Then, according tothe status of capital structure and empirical results to propose measures and suggestions foroptimizing our capital structure and improving business performance of Chinese listedcommercial banks.