Study On Relationship Between Ownership Structure And Performance Of Rural Commercial Banks

In the process of rural economic development,rural commercial banks,as the most important financial institution to participate in the main body,play a vital role in promoting the prosperity of the rural economy.The performance of bank management is largely due to whether the corporate governance structure is perfect,and the management of ownership structure is one of the main problems involved in corporate governance.However,the majority of rural commercial banks exist in the ownership structure is not very reasonable,which greatly hinder the rural commercial banks’ operating performance and competitiveness.This paper analyzes the impact of the ownership structure of 23 rural commercial banks on the bank’s performance by using the panel data fixed effect model from the three aspects of equity nature,ownership concentration and equity balance.In the first five chapters,we mainly analyze the theory,evolution and current situation of ownership structure and bank performance.The sixth chapters are based on the empirical study of this paper.First,the Hausman test is used to determine the fixed effect or stochastic effect model of the sample model and the parameter estimation method.Then the fixed effect model is established to analyze the relationship between ownership structure and the business performance,according to the corresponding indicators of the regression analysis.The conclusion of the research shows that the greater the proportion of state ownership,the excessive concentration of equity and the smaller balance of checks and balances to the largest shareholder,the negative effect of the rural commercial banks’ operating performance is not ideal,showing a negative correlation.This paper argues that in the management of the ownership structure of rural commercial banks,it is necessary to properly release some state-owned shares,maintain the concentration of ownership in a reasonable range,strengthen the management of the largest shareholder and supervise the role,with a view to effectively improve the company’s management level and performance.