An Empirical Analysis Of The Impact Of Private Equity Investment On The Performance Of Commercial Banks

Due to the rapid reformation of China’s financial industry and the gradual opening of China’s financial market,the market environment,mode of operation and competitive situation faced by China’s financial industry have also undergone significant changes.In the face of such factors as capital constraints,homogeneous management,financing structure imbalance,foreign mixed operation and other factors,China’s commercial banks have undergone a huge impact and severe challenges,opening up the capital market has become an inevitable choice for China’s commercial banks.In this case,the private equity investment business provides China’s commercial banks a good opportunity to adapt to the environment better.To carry out private equity investment,it is beneficial for China’s commercial banks to improve the security of funds,increase profit,operate efficiently and develop sustainably.Therefore,it is an urgent and inevitable choice for commercial banks to actively carry out private equity investment business.However,commercial banks to carry out private equity investment business also faces enormous challenges in the current financial situation.To sum up,it is of great significance to research the related issues of private equity investment business in China’s commercial banks.Based on the annual data of 12 listed commercial banks in China from 2010 to 2015,this paper uses the theoretical analysis to analyze the impact of private equity investment on the performance of commercial banks for the first time.The results show that private equity investment has a positive impact on the improvement of the performance of commercial banks in China,and the nature of commercial banks and the macroeconomic environment also have different effects on the performance of private equity.This paper is divided into six parts to research the impact of private equity investment on the performance of commercial banks.The first part introduces the research background,significance and research status in China and other countries.The second part introduces the theory of private equity investment,and combines the economic theory with the actual situation of China’s commercial banks to systematically analysis the motivation and advantages of China’s commercial banks to carry out private equity investment business.The third part introduces the current situation of the private equity market in developed countries and the mode of private equity investment in foreign commercial banks.The fourth part introduces the current situation of China’s private equity market and the mode of private equity investment in China’s commercial banks.The fifth part makes an empirical study on the impact of private equity investment on the performance of commercial banks.The sixth part draws conclusions and puts forward relevant suggestions.