Research On The Impact Of Ownership Structure On The Performance Of Commercial Banks In China

The center of modern economic development is finance,and banks are the important parts of financing.Their operating conditions have a significant impact on the development of contemporary economy.During the period of transition from high growth to medium to low growth in China’s economy,due to the slowdown in macroeconomic growth,the decline in market interest rates,the rising rate of non performing loans,and the shrinking profit space of banks,China has entered a critical period of transformation.If we do not do a good job in managing our own system,as to fierce business competition in the market,it will make a significant difference on China’s commercial banks’ ability to withstand risks and maintain profitability in a harsh business environment.In Chinese listed companies’ management system,the ownership structure plays an important role in the property rights system of listed companies,which directly affects the corporate governance structure and operation mode of listed companies.Therefore,optimizing the ownership structure as a part of internal governance of banks has become an important way to improve bank performance and risk resistance.At the same time,considering the important role of stable operating performance of banks in the national economy and the variables and challenges faced in the new wave of financial openness,it is particularly important to study the impact of ownership structure on the operating performance of commercial banks.The ownership structure is the basis of property rights in the corporate governance,which determines the way to motivate for management.Many scholars have conducted research on the impact of ownership structure on corporate performance,but commercial banks cannot copy other companies when studying their ownership structure and corporate governance due to their characteristics of asymmetric information and high debt ratios.Thus,this article selects data from 50 listed commercial banks from 2012 to 2021 to study the impact mechanism of bank ownership structure on performance and possible governance paths.This article will explore the impact of equity structure on bank operating performance from three perspectives,because of the differences in the indexes of different banks,this article studies four kinds of commercial banks,so as to get different results,in order to obtain heterogeneous results.In terms of empirical regression,first,a comprehensive performance evaluation system is constructed to obtain the explained variable-comprehensive performance by using factor analysis.Secondly,when studying the impact of equity structure on bank performance,a stationarity test is conducted on the sample data,mainly to prevent "false returns".Next,use the F test and Hausman test to determine which model to use for regression.Finally,change the sample time interval and sample size to conduct a robustness test,and obtain some results.First,for all banks,the equity balance and indicators indicating equity concentration have an "inverted U-shaped" relationship with bank performance,but there are distinctions between all kinds of banks;Second,there is an "inverted U" relation between the proportion of state-owned stock and foreign stock,and the ratio of state stock and bank’s performance.Different types of bank ownership structure have different impacts on bank performance.Finally,on the basis of empirical results,combined with the theory study and the practical problems of stock ownership structure of the listed commercial banks,some corresponding countermeasures and suggestions are put forward:maintain a relatively centralized and effective equity distribution structure,promote the diversification of equity nature,and strengthen the external supervision of small and medium-sized commercial banks,to achieve the goal of optimizing the equity structure and improving the performance of commercial banks in China.