An Empirical Study Of Capital Structure Affecting Business Performance Of Commercial Banks

China's financial marketization reform has brought unprecedented opportunities to the banking industry.At the same time,the rise of emerging powers such as foreign banks and private banks is also challenging the development of chinese commercial banks.Therefore,in order to enable Chinese commercial banks to have strong competitiveness in the fierce market competition,the improvement of business performance has become an inevitable choice and responsibility,and the optimization of capital structure is an important way to improve business performance.In the performance of commercial banks,there are two main ways to influence the performance of commercial banks:First,direct impact,the difference in capital structure of commercial banks will directly produce cost differences,while cost is an important indicator of performance appraisal;second,indirect impact,Differences in capital structure can create differences in bank governance structures.Among the many factors affecting performance,the level of governance will have a major impact on the comprehensive management of commercial banks,and then show their performance.Therefore,research on how capital structure affects the performance of commercial banks can play an important role in improving their performance.Based on the impact of different capital structure on business performance,this paper uses nine commercial banks as research samples,using the data of capital structure and business performance of commercial banks in 2008-2017,using principal component analysis to measure the performance of nine commercial banks.The comprehensive score is used as the explanatory variable of the model,and the relevant variables of the capital structure are used as explanatory variables.The effects of different capital variables on performance are obtained through multiple linear regression.According to the analysis,the judgment of each capital variable affects the performance of commercial banks.The conclusions drawn from the study are as follows:First,the increase in the shareholding of the largest shareholder of a commercial bank will have a negative impact on the business performance of commercial banks,that is,the negative impact of commercial bank performance and the largest shareholder.Second,the increase in the shareholding ratio of the top five shareholders of commercial banks can effectively improve the performance level of commercial banks,that is,there is a positive correlation between the two.Third,the performance level of commercial banks will be improved with the increase of their core capital adequacy ratio,that is,the relationship between them is positively related.Fourth,the performance level of commercial banks will decrease with the increase of debt ratio,and there is a negative correlation between them.