Study Of The Ownership Structure’s Influence On The Performance Of China Listed Banks

With the development of economy, China’s financial industry plays an importantrole in the reform of national economy. As the core business of financial industry，the sustainable performance of commercial banking is essential for the developmentof economy. Performance improvement of listed banks ultimately depends on thecorporate governance structure, which is based on the ownership structure. Listedbanks’ performance is closely linked to the ownership structure. This study is toanalyze what impact ownership structure will have on banks’ performance and whatkind of ownership structure would be appropriate for the listed banks in China.With the combination of theory analysis and empirical analysis, the study firstlyfocuses on the theory analysis, including the review of methods and conclusions ofprevious studies, principal-agent theory and control theory, illustrating the underlyingmeaning of ownership structure and corporate performance from the perspective ofbanking industry to build the banks’ performance index system and to prepare forfactor analysis. Then we analyze the current situation of the ownership structure andcorporate performance of the listed banks in China to get a general understanding ofthe ownership structure and performance of listed banks in China. Subsequently, wedesign the empirical analysis with the panel data from16China listed banks andvariables we chose. The hypothesis is made based on the theoretical analysis ofrelationship between ownership structure and corporate performance. We calculatethe bank performance index with factor analysis method. Then the multipleregression models are built to analyze the relationship between ownership structureand banks’ performance.The study finally concludes the negative relationship between state-owned sharesand banks’ performance, the positive relationship between corporate shares andbanks’ performance, no significant relationship between liquid shares and banks’performance, inverted U-curved relationship between the ownership concentration and banks’ performance, inverted U-curved relationship between the ownershipbalance and banks’ performance. According to the conclusion, this paper makes someadvices to optimize the ownership structure and performance of China listed banks.