Research On The Firm Value Of Minsheng Bank

In recent years,China's financial market maintains stable operation,the banking sector coming up quickly.Although the number of listed commercial banks account less than 1% of the total number of listed companies in China,but the banking shares value accounts for more than 11%.The trend of banking shares has an important influence on China's securities market.On the whole,the loan performance was excellent and the profitability was strong.Meanwhile,the banking industry is facing more and more complex internal and external situation,the continued pressure of the economy and the liberalization of interest rates,the reform of the financial system and other policies have increased the uncertainty.The value of the bank may not be fully reflected in the capital market.Therefore,it is of great practical significance to explore the discovery of the capital market's intrinsic value of listed companies in the banking industry and whether there is room for further improvement from the perspective of management level.This paper chooses Minsheng Bank as the object of study.On the basis of reviewing the corporate value theory,first of all,the intrinsic value of Minsheng Bank's stock is measured using the discounted cash flow method of equity,this paper chooses cash flow method to calculate the absolute value of Minsheng Bank,the PE ratio and PB book value index is used to calculate the relative value of Minsheng Bank.In conclusion,the value of Minsheng Bank is underestimated by the capital market after compare with these two methods.Secondly,based on the annual report disclosed by Minsheng Bank in 2012-2016,diagnose the problems in the management of Minsheng Bank to find out the factors that affect the corporate value of Minsheng Bank.The study found that Minsheng Bank's customer resources are not dominant and its marketing level is not high;the workforce is unstable;its innovation capability is still insufficient;there is a weak link in overall risk management and control;the sustainability of profitability is not strong;the structure needs further optimization;the quality of assets needs improvement.Financial performance and core competitiveness are factors that affect the value of Minsheng Bank.This paper suggests that Minsheng Bank enhance its core competitiveness,improve the overall quality of employees,strengthen comprehensive risk management promote strategic transformation,and strengthen the communication with the capital market to obtain market recognition.The research in this paper not only helps to improve the corporate value of Minsheng Bank,but also has reference significance for other banks to improve their financial performance.