| Commercial banks, as the hub of China’s financial market, play an important role instimulating entity economy. However, the fact that our banking system is enormousand complex determines that there a possibly various risks, in which operational riskis unpredictable and causally complicated. Therefore, it is highly necessary tounderstand and control operational risk. Past studies on operational risk could bedivided into research on definition and distribution, data mining, impact andmeasurement. Distribution of operational events and impact on China’s listedcommercial banks are mainly discussed in this paper.First, we use descriptive statistics method to analyze distribution of operational events.After several time series and cross sectional analysis, we found that the possibilities ofoccurrence of operational events differs among banks of different kinds, amongevents of different kinds and among banks of different areas. The findings might bevaluable for monitors and managers since they could well regulate and controloperational risk with emphasis.Furthermore, empirical analysis of this paper focuses on the impact of operationalevents on China’s listed commercial banks and we implemented event study method.Although previous researches have conducted event method on relevant topicsrepeatedly, we split data sample by time periods and bank categories in order to havea deeper understanding of the negative influence from operational events on themarket value of commercial banks. It is concluded that the total market value losscaused by the operational events is far more than the explicit loss by the single event;also, as information spreads faster and market goes more transparent, the harm causedby operational events gets bigger in recent years; and this harm is proved to be moredisastrous for the biggest five state-owned commercial banks than that for the restlisted banks. All these inspirations from empirical study will give meaningful clues toindustrial managers. |
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