Effects Of Small Banks Ownership Structure Of Its Performance

As the most important based unit in our country financial industry,Small and medium-sized commercial Banks play important role in support of the local economic development and small enterprises. It is an important factor for Examining whether the system is perfect to check reasonableness of its ownership structure and see whether the changing of the nature of the shareholders can have impact on business performance.This article analyzes the relationship between equity structure and business performance of our country small and medium-sized commercial Banks,and do a Research on the ownership structure factor which have a important impact for banking business performance in our country and do a advice for the equity structure reform small of medium-sized commercial Banks and other financial institutions in the future.This article firstly review the literature about the ownership structure of the domestic and foreign commercial bank and operating performance.And the research conclusion is briefly reviewed.secondly,this paper discusses the basic theory of equity structure and business performance Respectively,the particularity of commercial Banks and the analysis of relationship between equity structure and business performance about commercial bank.Then,using the annual report of listed joint-stock commercial Banks in China,Selecting representative financial indicators,using the principal component analysis to extract the comprehensive performance indicators and looking Equity structure as the independent variable,It does a empirical analysis for the relationship between ownership structure and operating performance of China’s Joint-stock commercial bank.In this paper, empirical research conclusion is as follows:the proportion of state shares is negatively related to the business performance significantly in the commercial bank of our country;Legal person share proportion and operating performance are related,current ratio is negatively related to the business performance,but they were not significant.The first shareholder’s stake and holding ability are negatively related to the operating performance of the commercial Banks significantly. The top ten shareholders’ownership are related to the sum of operating performance, but not significant.Banks are positively related to the scale and management performance in the ownership structured factors.But the financial leverage is negatively related to the business performance significantly.Lastly,according to theoretical analysis and empirical research,we Put forward the suggestions for optimization of commercial bank ownership structure and the improvement of commercial Banks business performance.