An Empirical Study On The Impact Of Commercial Bank’s Capital Structure On Its Operating Performance In China

Capital market development in China is not sound, Western classic theory ofcapital structure in listed companies in China are not completely applicable. InGeneral, the enterprises ’ capital structure ratio between equity capital and debt capital.However commercial bank capital concept is inconsistent with the general concept ofenterprise capital, commercial banks not only have equity capital also owns a share ofdebt capital. The new Basel Capital Accord, as banks have new rules, commercialbanks ’ core capital and supplementary capital divided into two broad categories, sizemust not exceed the core capital and supplementary capital100%, in fact the core ofthe capital structure that we commonly referred to as ownership structure. The capitalstructure of the Bank, in particular ownership structure determines the governancestructure, governance structure and operating performance could have a significantimpact, so studying the effect of capital structure on the performance of commercialbanks, thereby optimizing the capital structure is of great significance.The article primary coverage is studies Our country Commercial bank capitalstructure through the real diagnosis analysis to manage the achievements the influence.First this article inspects the commercial bank by the stockholder’s rights proportionas well as capital sufficient these targets the capital structure, takes the managementachievements by the Ministry of Finance system target system the target. In the realdiagnosis research process, first chooses present our country to go on the market hasthe representative10commercial bank, used in2007-in20126year kneading boarddata analysis whole commercial bank capital structure to manage the achievementsthe influence, has drawn a total conclusion. In order to then better explained we muststudy the question, selected the industry and commerce bank to take state-owned bankrepresentative, the China bank took joint stock system commercial bankrepresentative, used to these two banks2007-2012quarter data has carried on themulti-dimensional return, carried on the contrast analysis with the total real diagnosisresult.This article in research of process focused on from actual starting and research results of authenticity, by are of research conclusions following: regardless of is onState-owned large Bank, also is on small of joint-stock Bank, Bank first largeshareholders holds proportion and business performance are is significantly negativerelated, this and we of premise assumptions are is consistent of; the bank`s five largeshareholders holds proportion and business performance significantly are related;capital adequate rate and commercial banks of business performance somehow, alsorendering out are related. On total of Bank regression analysis concluded that, in5%of significantly sexual level Xia, capital adequate rate and business performance issignificantly related, total interests accounted for total assets of share and businessperformance non-significantly sexual are related, on industrial and commercial bankof of empirical analysis results displayed total interests accounted for total assets ofshare and business performance rendering negative related, on Huaxia Bank ofresearch found, total interests accounted for total assets of share is rendering out doesnot too significantly of are related. Finally according to the present situation of Chinacommercial bank’s capital structure and the results of empirical tests, a optimal capitalstructure of Chinese commercial banks and policy recommendations to improvebusiness performance.