An Analysis On The Impact Of China’s Listed Commercial Bank’s Capital Structure On Operating Performance

Chinese national economy has developed fast since reform and opening up. Among this,the banking industry has injected fresh blood into Chinese real economy. As credit intermediary,commercial banks provide efficient support for the development of Chinese enterprises,regulating the fund flow and improving the allocative efficiency of idle funds. During the process of economy globalization, the deepening joint-stock reform and the entry of foreign banks, undoubtedly, bring opportunities and challenges to domestic commercial banks.At the beginning, this paper introduce the theory related to commercial banks capital structure and redefine the definition of commercial bank capital structure, which include traditional theory of capital structure, modern capital structure theory and new modern capital structure theory. Then, this paper introduces the characteristics and the methods to measure of their capital structure and evaluate the capital structure from three aspects: the core capital,supplementary capital and capital adequacy. Finally, this paper selects the relevant data of 16 listed commercial banks in 2005-2014, and analysis how commercial bank capital structure influences on business performance. Finally, we draw the following conclusion:(1) relatively concentrated equity ownership structure can promote the bank performance;(2) the first big shareholders nature is negatively related to the business performance;(3) the proportion of supplementary capital is positively related to the business performance;(4) the capital adequacy ratio is positively related to the operating performance.In conclusion, the paper puts forward three suggestions to improve the operation performance of commercial bank, such as optimizating the core capital structure, increasing the proportion of subsidiary capital and optimizating the external environment.