An Economic Cyclical Study On The Financing Behavior Of China's Listed Commercial Banks

Because of financial friction,enterprises will choose debt financing or equity financing during different stages of the economic cycle.Commercial banks are a kind of special enterprise,because they have both credit intermediary function and seeking profit.On the one hand,the commercial banks collect funds through debt,then they concentrate the idle funds in the society into its own pool of funds,and spread their assets to the various sectors of the economy.Therefore,the fluctuation of the financing behavior of commercial banks has interaction with the economic cycle and they will affect each other.In recent years,most of the domestic and foreign scholars mainly examine the relationship between the financing behavior and the economic cycle of the enterprise from two aspects:the total data and panel data.Only few paper involves the economic cyclical study of the financing behavior of the commercial banks.Up to now,there is no accepted theory that can make a positive theoretical prediction for the financing behavior of commercial banks,especially the cyclical nature of equity financing.Therefore,it is necessary to provide a micro empirical basis for the construction of a macro incomplete financial market model with Chinese characteristics from an empirical perspective.For this purpose,this paper,based on the practice of the actual economic cycle literature,uses the actual GDP cycle terms obtained by the H-P filter as a measure of macroeconomic fluctuations,and carries out the panel data analysis and the total data analysis of the listed commercial banks of China to study the debt financing and equity financing of commercial banks.Then we get the basically consistent conclusion.This paper selects 14 commercial banks listed on A stock markets,and through their open data explores the relationship between the financing behavior of different scale commercial banks and the business cycle.First of all,this paper introduces the research on the relationship between financing behavior and business cycle of commercial banks both at home and abroad.Then,it describes the economic cycle theory and introduces the current macroeconomic situation.Then,this paper continues to explain the financing status of commercial banks in China and compares the different financing methods of commercial banks.Furthermore,through empirical analysis,this paper validates the proposed conjectures,that is,the debt financing behavior and the equity financing behavior of commercial banks are related to the economic cycle,and the commercial banks with different assets size will choose different financing ways with the fluctuation of the economic cycle.Finally,this article draws the following conclusions:(1)the amount of debt financing and equity financing of listed commercial banks are positively related to the economic cycle,that is,they all follow the cyclical nature of the business cycle;(2)the size of the commercial bank has an impact on the choice of its own financing way,that is,the size of the commercial bank is an important factor to explain the periodic behavior of the commercial banks;(3)small commercial banks prefer equity financing,while large commercial banks prefer debt financing,and most commercial banks adjust their assets and liabilities with the change of the economic cycle;(4)the results of this study show that the different changes in the balance sheet projects of different scale commercial banks may bring different policy implications.The macro Prudential departments can revise the policies according to the different scale of commercial banks to bring welfare improvement to the whole economy.The above facts are of great significance to building a macro financial friction model that is consistent with China's reality.