Research On The Influence Of Equity Structure On The Innovation Ability Of Commercial Banks

At present,commercial banks are at the end of the disappearing dividend effect.With the development of Internet finance,fintech,digital economy and digital finance,the development of commercial banks faces challenges.Not only that,in our country macroeconomic growth slowdown,the number of non-performing loans remains high,relying on the traditional business profits of commercial banks is difficult to achieve long-term development.Therefore,to find new profit growth point,it is inseparable from strong financial innovation ability.Innovation ability can enhance the core competitiveness of commercial banks.However,the shareholding structure,as a fundamental part of corporate governance,fundamentally affects the decision-making mechanism of commercial banks,which in turn affects their innovative behavior.Then how to optimize the equity structure and improve the innovation ability of commercial banks provides behavioral guidelines and governance ideas for commercial banks,which has far-reaching guiding significance.This paper explores the relationship between the equity structure and innovation capability of commercial banks from two perspectives: the distribution of the number of equity and the nature of equity,using the data of 19 commercial banks from 2007 to 2021 as a sample.This paper first conducts a literature review and then finds the theoretical support for the relationship through the analysis of relevant theories,and further explores the mechanism of the relationship and proposes hypotheses.In the empirical test part,GMM model is used to test the dynamic panel data.Innovation is a process with large capital investment and long period,and the level of innovation ability is not only influenced by other factors in the same period,but also by its own previous innovation status.Therefore,due to the characteristics of innovation activities a variable measuring innovation capability with a one-period lag was introduced to ensure the accuracy of the study findings.In addition,due to the limited number of samples,in order to further control the deviation,the systematic GMM model with relative advantages was selected.This can not only overcome the indigeneity problem but also solve the reverse causality problem.Finally,the explanatory variables were replaced,the special years were controlled for robustness tests,and the samples were grouped for heterogeneity tests.Among the findings: Firstly,the higher the equity concentration,the weaker the innovation ability of commercial banks;the higher the equity checks and balances,the stronger the innovation ability of commercial banks.Secondly,foreign ownership has a positive effect on the innovation ability of commercial banks.Finally,heterogeneity analysis divides the whole sample into large state-owned banks and non-large state-owned banks.The result is consistent with the whole sample,it’s just that the strength of the impact is different.The negative relationship of equity concentration on innovation capability is somewhat weaker for large state-owned commercial banks,while the positive relationship of equity checks and balances is also weaker than that of non-large state-owned commercial banks,but the positive effect of foreign ownership on innovation capability of commercial banks is stronger than that of non-large commercial banks.Based on the above findings,the policy implications of this paper are as follows: Choose reasonable ownership structure and maintain reasonable ownership balance degree;improve their own innovation ability;make greater efforts to attract foreign investment.