Between Financial Institutions’ Ownership Structure Of China And Business Performance

The development of finance is the core of economic development,adjusting equity structure of financial institutions is the reform of the hot spots in financial industry.This paper thoroughly studies the equity structure,and equity of financial institutions can be divided into state-owned shares,foreign shares and other equity;and in view of the complexity and particularity of state-owned shares,we divide state-owned shares into three categories in a whole new perspective.There is "two levels" for the state shares, "three levels" of state-owned assets management company shares, "a multi-levels" of state-owned shares.After further analysis,I am convincede that "three levels" for state-owned assets management company shares should further refine to classify it into huijin shares,centre finance shares,the local state-owned assets management in company shares and we can further distinguish the difference between state-owned shares,foreign shares and other equity.Based on 17 share-holding commercial Banks,40 city commercial bank,41 securities companies and three insurance companies in total of 101 financial companies from 2007 to 2014,we make regression analysis to analyze the relationship between financial institutions and ownership structure in two categories:general regression and the industry regression.In order to make the analysis more accurat,we abandon the method that the most scholars share structure in the first big shareholders in ratio of 20% and 50% and divide it into shares dispersed,relative holdings and absolute holding in the process of regression. To refer Xiangyi Xu(2005) in this paper and considering the particularity of financial enterprises,we resume the classification: first of all, according to the principle of substantial we sort out the top five shareholders holding proportion,if the first big shareholder’s holding proportion is greater than the sum of the second to fifth largest shareholder’s holding proportion,it is absolutely holding shareholders and its ownership concentration is higher,otherwise it is relative holdings and it is balances between shareholders.After a series of regression analysis,we draw the following conclusion:In finance F10 and ROA was significantly positively related,and the overall is positively u-shaped relation,but not falling into 42.62%.Modest equity of balance degree may be more beneficial to the development of the financial sector and a dominant may damage enterprise performance.State and capital shares is not a finance major shareholders;state-owned enterprises as major shareholders had no significant effect to the development of the financial sector;other shares,such as private equity, as the major shareholders have a significant effect to the development of financial industry. State-owned assets management company as a major shareholde is good for financial enterprises operating performance;to compare with the local state-owned assets management company,huijin and centre financials as the largest shareholder is more of an advantage for the financial sector,which is obviously better than the "special financial holding company" to "temasek mode of state-owned assets management company";in this sense,huijin and centre financials is successful. And components of equity in the financial sector have to adjust with the nature of the industry.