Empirical Research On Relationship Between Stock Return And Profit Efficiency Of Commercial Banks

In recent years,research for bank efficiency has became a most important topic of financial industry and regulatory authorities. China's banking industry has experienced large-scale shareholding reform since 2003, and has gone through the global financial crisis began in 2008, now it is facing the challenges and competition from opening-door policy in banking business. Under this background, this text studies the efficiency of domestic commercial banks and discusses the relationship between efficiency and stock returns from the angle of market, it has important theoretical and practical value.This paper summarizes the existing research and analyses the relationship between the profit efficiency and stock returns empirically from 2007 to 2009, under the circumstance of institutional reform and globalization of banking industry. First of all, give a detailed description for research background, significance of research, research contents, research methods and innovation points; Secondly, analyze the concept, classification, measurement, relationship between stock performance of commercial bank efficiency, and provide research routine; Thirdly, estimate the profit efficiency of 11 listed commercial banks in China. This article draws the empirical conclusion on the basis of input-output panel data of 11 listed commercial banks in China from 2007 to 2009 with SFA and make some analyses and offers some corresponding views; fourthly, test the relationship between profit efficiency and stock returns on the basis of the above empirical results, the result confirms the positive relation between them but not significant; Finally, the text summarizes the research conclusion, proposes suggestions to improve the efficiency of Chinese commercial banks, and points out the deficiency and future research prospect of research.