Ownership Structure And Performance Of Commercial Banks: An Empirical Analysis Of Domestic And Foreign Commercial Banks

The party’s 20 th Congress has clearly pointed out that high-quality development is the primary task of building a modern socialist country in an all-round way,and it has made five strategic plans around high-quality economic development,the proposal of these strategic plans and the implementation of the next step in the report,on the one hand,are the requirements for the commercial banks to serve the high-quality development of the economy,and explain the tasks,on the other hand,it also provides the opportunity and creates the condition for the development of our country’s banking industry in the new period.As the most important part of bank governance,ownership structure can directly or indirectly affect the governance structure and operational efficiency of banks,it is an important subject in the flourishing development of our country’s banking industry today.This paper comprehensively analyzes the similarities and differences between ownership structure and performance of commercial banks at home and abroad by means of literature study,quantitative and qualitative analysis,and empirical research.This paper uses factor analysis method to construct the performance index evaluation system of commercial banks from four aspects: profitability,liquidity,security and development.Based on the evaluation system,the paper discusses the impact of ownership structure on the comprehensive performance of commercial banks.Using the panel data of the top 100 commercial banks from 2016 to 2021,this paper studies the comprehensive performance of the top 100 commercial banks in the world from the perspectives of equity concentration and equity checks and balances impact.Taking the sum of the shares held by the former major shareholders,the sum of the square of the shares held by the former major shareholders,the shares held by the second to the tenth largest shareholders and the shares held by the first major shareholder as the core variables,the fixed effect model is used to analyze the asset scale,net income,equity multiplier and GDP growth rate of the country of the bank.The empirical results show that compared with foreign banks,domestic commercial banks have more concentrated equity,better performance of profitability,security and development indicators,and worse performance of liquidity indicators.The proportion of top ten shareholders is negatively correlated with the performance of domestic commercial banks,that is,the more concentrated the equity,the worse the performance of the bank.The shareholding ratio of the largest shareholder shows an inverted U-shaped relationship with the bank performance,that is,with the increase of the shareholding ratio of the largest shareholder,the bank performance first increases and then decreases.For foreign commercial banks,there is no significant relationship between the ownership structure and bank performance.According to the order of the literature review,the theoretical review,the present situation analysis,the empirical analysis and the results suggestions,after the theoretical empirical analysis of the equity structure and management performance of domestic and foreign commercial banks,the paper proposes some relevant suggestions based on the empirical results,in order to improve the management performance of Chinese commercial banks and optimize the equity structure of Chinese commercial banks.