Research On The Relationship Between Ownership Structure And Performance Of Listed Banks In China

In recent years, corporate governance has become a hot issue and the ownershipstructure as the core of corporate governance, has also been widespread concern in theacademic community. In addition, the world economy is in the doldrums, and China’smacro-economic environment is also not boom. Coupled with the development of thefinancial sector and the bank’s own problems, the banking corporate governanceissues are more worthy of study. In China, commercial banks have become the mostimportant financial institutions and have a significant impact on the overall economicand social development. With the joint-stock reform of state-owned banks deepening,successful listing of a number of commercial banks and in-depth equity divisionreform, the development of China’s commercial banks has entered a period ofacceleration. Therefore, the ownership structure of listed banks is a question worthy tobe discussed. How to optimize the ownership structure of China’s listed banks, so asto enhance their performance? Research on this question has important theoretical andpractical significance.Firstly, the article reviews the theoretical basis of equity governance, which areseparation of ownership theory, agency theory and the theory of ownership. Then, itdescribes the concepts of ownership structure and performance. This paper alsoanalyzes the impact of ownership structure on performance for the foundation of empirical analysis from the aspects of the equity property, equity concentration andequity restriction. Secondly, the paper designs the status of the ownership structureand performance of the listed banks, Summarizes the problems of the ownershipstructure of China’s listed banks, and puts forward five hypotheses.In the empirical part, there are several steps, which are the selection of the studysample and data, the definition of variables and the introduction of the regressionmodels. In the step of the definition of variables, the paper uses the factor analysis toconstruct the explained variable through SPSS18software, and successfully gets theperformance scores of China’s14listed banks from2008to2012. Next part is theempirical analysis. First, the paper describes the current situations and trends ofChina’s14listed banks in the ownership structure and performance. Then it usesregression analysis to establish multiple regression models to analyze the correlationbetween ownership structure and performance, and draws the following results: interms of equity property, the proportion of state-owned shares of listed banks in ourcountry has negative effect on the performance, the proportion of tradable shares haspositive effect on the performance, and there is no relationship between the proportionof legal persons shares and the performance. In terms of equity concentration andrestriction, the relationship is inverted U-shaped.Finally, with summarizing the results of the regression analysis, we put forwardthree proposals that are reducing the proportion of state-owned shares, improvingcorporate governance mechanism and strengthening supervision, and fostering diversecorporate investors.