An Empirical Study On The Equity Concentration Degree,Operating Risk And Operating Performance Of China's Listed Banks

The operational risk of the banking industry can easily spread to the whole financial system and thus affect the stability of the national economy,its operational risk is borne by the public,and information asymmetry leads to serious principal-agent problem and other characteristics.The operational risk and performance of the banking industry are widely concerned by the public and the regulatory authorities.In recent years,China's financial industry has been deepened and reformed,among which the banking sector has also been reformed.In the process of a series of reforms,the issues of corporate governance and ownership concentration have been increasingly concerned.Therefore,this paper discusses the impact of the ownership concentration of Banks on their business risks and business performance,and takes China's listed Banks as the specific research object.Based on the principal-agent theory and other theories,this paper USES the data of equity concentration,business risk and business performance of China's listed Banks from 2010 to 2017 to conduct random effect regression,fixed effect regression and mixed OLS regression respectively.The basic conclusion of this paper is obtained through empirical studies,that is,there is a reverse correlation between the equity concentration degree of China's listed Banks and their business risks.There is also a negative correlation between ownership concentration and business performance.The more concentrated the ownership,the lower the bank's business performance.This indicates that Banks need to make a tradeoff between reducing business risks and improving business performance,and reduce business risks or improve business performance by moderately adjusting the equity concentration.