Research On The Impact Of China’s Listed Commercial Banks’Capital Structure On Profitability

The banking industry occupy an important position in national economic and financial operation of a country, the stable development of the banking industry has an important role to the economic development of a country. But compared with foreign countries, China’s banking industry has a later start and its development level fall behind the world advanced level. And as China’s financial markets opening up, a large number of foreign banks enter the domestic market constantly, the competition between Banks is becoming intense increasingly, domestic commercial bank faces severe challenges from home and abroad. For survival and development of Commercial Banks, it is necessary to improve their own profitability constantly in order to enhance the competitive ability, and it is also in order to adapt to the development of social economy and the fierce market competition.In this paper, we select14listed commercial banks in our country as the samples bank, and analyze the bank capital structure and profitability of the current situation, and analyze the way of the commercial bank capital structure influence the profitability. On this basis It select the14listed commercial banks from2006to2011annual profitability and index data related capital structure, through the establishment of entity fixed effects regression model to estimate listed commercial banks capital structure is how to producing influence of the profitability. Empirical analysis results show that the capital structure of the listed commercial banks has a significant effect to its profitability. According to the empirical analysis results,this paper holds that the commercial banks can optimize their capital structure to improve its profitability. Finally based on the results of empirical analysis,the paper has put forward relevant countermeasures and suggestions on how to optimize the bank capital structure to increase its profitability.