Empirical Study On The Influence Of Capital Structure On The Risk Of Commercial Banks In China

Commercial banks play a core role in the financial system in our country and are crucial to maintain economic operation.As special enterprises which run currency capital,commercial banks must be with risk in the emergence and development process.Capital structure is an important feature of the commercial banks,not only affects the value creation of banks,but also affects the ability of banks to resist risk to a certain extent.With the reform and development of financial market,the capital structure of Chinese commercial banks is experiencing a series of changes,which is an important occasion when we can perfect capital structure in order to improve the ability of the risk precaution and promote the competitiveness of banks.The capital structure in this paper includes two aspects,one is the proportion of bank debt capital and equity capital,namely financing structure;the other is the composition of debt capital and equity capital,namely the ownership structure and debt structure.This paper firstly theoretically analyzes the influence of capital structure on the risk of commercial banks.Then selects 8 indicators from three dimensions,including credit risk,liquidity risk,the ability to cover risk,to calculate risk comprehensive scores,which are used to measure comprehensive risk of commercial banks.On this basis,this paper analyzes the relationship between capital structure and the risk of banks through fixed effects model of the panel regression.This paper selects typical indicators from financing structure,ownership structure and debt structure.Based on the model that tests the influence of capital structure on the risk of banks,the further research tests the interaction of the ownershipconcentration and the nature of equity,the nonlinear impact of the deposit ratio and the market discipline of the subordinated debts.Through the analysis of the empirical results,combined with related theories,this article puts forward some suggestions from the financing structure,ownership structure and debt structure.In terms of financing structure,banks should decrease the debt-equity ratio,promote endogenous financing proportion properly.In terms of ownership structure,banks should increase the variety of properties of shareholders,maintain a moderately diversified ownership structure.In addition,banks which are controlled by different kind of shareholders should be managed differently.Specifically,banks which are controlled by state and state-owned enterprises should avoid high ownership concentration,while banks which are controlled by other property can increase ownership concentration in order to reduce risk because of the dispersed ownership structure;In terms of the debt structure,banks should choose the appropriate deposit ratio and issue subordinated debt,enrich the debt structure to reduce the risk.