A Study On The Relationship Between The Market Share And The Value Of Commercial Banks

With the development of China's economy,remarkable changes has taken place in our financial system.In particular,the market structure of our banking industry has changed significantly compared with the previous one.On the reform of state-owned commercial banks in the process of market-oriented commercialization,the entry threshold of the financial industry has been lowered.Urban commercial banks and urban credit cooperatives,rural commercial banks are gradually established and continue to develop and grow.Which has broken the monopoly position of the state-owned banks and optimized the competitive structure of the banking market in China so that the competitive power of the competition can be balanced.With the development trend of global economic integration and openness.There will be more economic activities such as merger acquisition,asset sale,asset restructuring and share acquisition among commercial banks in China.And the economic activity that takes place in this transition depends on asset valuation.Market share,as a form of industry structure,can affect the performance of the firm and the value of the bank by influencing the market behavior of the enterprise.Then,is there a close relationship between market share and firm performance.Does such a relationship exist in Chinese listed banks.Moreover,there are many ways to evaluate the value of enterprises in our country,but the market share is not considered as a factor of value.So,after understanding the related theories and the literature research.We will do the study of the market share and the firm's value which means the worth of the commercial banks.Finally,try to determine whether market share needs to be taken into account when assessing the value of a commercial bank.This paper selects the data of 13 listed commercial banks form the year 2007 to 2016.Relying on the panel data,we could handle the data we have and set the model we need by means of measurement.Through the regression process,it is found that the change of the market share will affect the performance of the enterprise and the market share is an influence factor of the commercial bank's enterprise value.Finally,based on the existing methods of enterprise value evaluation and according to the regression results,we modified the existing evaluation model of commercial banks.