The Impact Of Foreign Equity On The Chinese Commercial Banks

The introduction of foreign big shareholders is one of the most important move inthe reform process of Chinese commercial banks.For the reasons that most scholarsmainly focused on the short-term influences in the past study and that it is even moreimportant to know the long-term effect,we studies the influence of foreign equity onboth the short-term and long-term performance in this paper. Based on the116paneldata of the16listed banks before2011,we find that i>: banks with more foreignshares perform better than those with fewer;ii>Foreign equity have negative effects inthe long run.The results lead to the policy conclusion that foreign equity may havenegative effects on the long term business security of commercial banks and it shouldbe paid more attention.