A Study On The Influence Of Ownership Structure On Risk-taking And Business Performance Of Commercial Bank

Formed on the basis of original city credit cooperatives,the urban commercial banks in China aimed to manage the local financial risks and ease the contradiction of having difficulties to open an account,settle and borrow in collective enterprises,private enterprises and individual industrial and commercial households.In recent years,the urban commercial banks have shown three new trends: the first is the introduction of strategic investors,the second is cross-regional operation,the third is joint reorganization.The rapid development of urban commercial banks has played a positive role in enriching Chinese multi-level financial system and supporting the stable development of the local economy.However,since the local government is a shareholder of the city's business,its essence is the actor of local state-owned enterprise shares and the local financial stocks.And it can control the urban commercial banks,which led to Chinese commercial banks show regional characteristics in the ownership structure,risk and performance comparing with the listed banks,increasing the risk of local financial system.Therefore,it is of great significance to study the ownership structure and the mechanism between risk bearing and performance of urban commercial banks in depth.In order to improve the ownership structure of our urban commercial banks,to further enhance their ability to resist risks,to improve their performance,to standardize the local government's financing behavior,and to resolve the relevant financial risks,this article analyses the relevant situation in our nation based on the perspective of the influence of the ownership structure to taking risks and their performance.This paper first states the theory of ownership structure,risk bearing and performance,and then discusses the present situation of the ownership structure of Chinese commercial banks,comparing it with state-owned commercial banks and national joint-stock commercial banks.On the basis of this,the paper puts forward the research hypothesis,constructing the panel data model to analyze the impact of ownership structure on risk and business performance by using the relevant data of 24 Chinese commercial banks from 2009 to 2015.It is found that the shareholding ratio of the largest shareholder is negatively correlated with the risk of the commercial firm,and the ultimate controlling shareholder has a significant impact on the bank's riskand the bank with government holding is at high risk.There is a negative correlation between the proportion of the largest shareholder and the performance,and the performance increases with the increase of the proportion of the top ten shareholders' shares to the total shares.The largest shareholder of the city commercial banks is state-owned,which will have negative effect on the performance of the city commercial banks.Combined with the empirical results,the article puts forward suggestions to control the city commercial banks operating risks and improving its performance from the perspectives of optimizing the concentration of equity,adjusting the ownership structure of equity modestly,introducing the strategic investors timely and strengthening of the ability of resisting risk.The main innovation of this paper includes:(1)The literature has mainly focused on the listed commercial banks and state-owned banks,while this paper focuses on Chinese urban commercial banks and this is a point of innovation;(2)The research samples are comprehensive,with wide coverage and long time span,whose results are very reliable;(3)This paper chooses the latest operating data of more than 20 city commercial banks from 2009 to 2015,which represents the latest developments and trends of banks,making the research more effective;(4)In this paper,we introduce not only the relevant explanatory variables,but also take into account the macro-level control variables when studying the internal mechanism of the ownership structure,taking risks and bank performance of Chinese commercial banks.,which accords to the reality in our country that commercial banks are controlled by local government and bear the status of government macroeconomic policy.