Research On Listed Commercial Bank’s Capital Structure And Business Performance In China

A stable development of the national economy cannot be finished without the support of the financial industry, banking industry is an important part of the financial industry, deposits, corporate loans, the capital is the guarantee and foundation of the normal operation of commercial banks, the capital structure of banks plays a vital role in the realization of the commercial bank’s operating performance. Since 2006, full liberalization of China’s banking industry, it is facing the global competition is more intense, the commercial bank of our country must try to improve its performance and enhance the risk resisting, improve the comprehensive competition ability if wanting to be succeed. Therefore, we must from the optimization of capital structure adjustment from the start, to find out the ways and measures to improve the performance of commercial banks, thus speeding up the reform of commercial banks operating system, avoid unnecessary risks, improve China’s financial market development, provide policy recommendations to promote the sustained, healthy, and efficient development of the banking industry.On the basis of previous studies and according to the modern capital structure theory, this paper from the aspects of core capital and the capital of the subsidiary, equity capital and debt capital analyzes its influence on the performance of commercial banks, respectively, from the three angles of the safety, liquidity, profitability to measure the operational performance of commercial banks. In full consideration the basis of the effectiveness of the sample availability and empirical results, we choose three explanatory variables to measure the operating performance, including asset profit rate, the rate of bad loans and loan to deposit ratio, and the measure of capital structure of the explanatory variables include the shareholding ratio of the top five shareholders, the nature of the first major shareholder, asset debt ratio, the capital of the subsidiary accounts for the proportion of net capital, the empirical analysis to the evaluation of equity proportion of core capital. We use the method of panel data regression to analyze the influence of the capital structure of the listed commercial banks on business performanceThe conclusion is: the correlation of the shares of China’s listed commercial banks operating performance and the top five shareholders is positive, correlation with the nature of the first major shareholder and net capital and capital subsidiary accounts for commercial banks, as well as the share of negative the correlation between the proportion of core capital is negative. In order to improve China’s listed commercial banks’ profitability, reduce the rate of non-performing loans of commercial banks, improve the liquidity of listed commercial banks and improve their business performance, We proposed some suggestions on improving the business performance to make the capital structure much better according to the empirical results. Including improve capital adequacy ratio, enhance the subsidiary capital accounts for the total capital ratio, reduce the share of the proportion of core capital and the degree of ownership concentration, deepening the joint-stock reform of state-owned commercial banks, as well as improve the operational mechanism of capital market.