Research On The Impact Of Capital Structure On Business Performance Of Commercial Banks In China

An efficient and stable financial system plays an important role in promoting national economic growth,and commercial banks are the main part of the modern financial system.At present,with the deepening of economic globalization and the continuous opening up of the financial industry,as well as the foreign banks rushing into China thoroughly,the market environment in which chinese commercial banks are located is becoming more and more fierce.Therefore,by optimizing the capital structure of chinese commercial banks to improve their business performance will help to survive and gain an advantage in an increasingly competitive environment.This paper studies the impact of chinese commercial banks’ capital structure on business performance through theoretical analysis and empirical test,finally some suggestions are put forward to optimize the capital structure of chinese commercial banks and improve their business performance.This paper first reviews the domestic and international research on capital structure and business performance and makes a comprehensive review of relevant literature.Secondly,based on the research of many domestic and foreign scholars,the related theories of capital structure and business performance are summarized and elaborated.Subsequently,the current situation of the capital structure and business performance of chinese commercial banks is analyzed in detail.Then,using the collected data to empirically analyze the relationship between capital structure and business performance.This paper divides the capital structure from three aspects: ownership structure,debt structure and subsidiary capital structure,and build a composite indicators of business performance from the four aspects of profitability,liquidity,safety and growth,using factor analysis and regression analysis empirically analyzed the relevant data of 16 listed commercial banks in China from 2008 to 2017 for a total of 10 years.The results show that:(1)the shareholding ratio of the top five shareholders is positively correlated with the business performance;(2)the shareholding ratio of the top ten shareholders is negatively correlated with the business performance;(3)the shareholding ratio of state-owned shares is negatively correlated with the business performance;(4)The asset-liability ratio is negatively correlated with the business performance.Finally,aiming at the results of theoretical and empirical analysis,the paper proposes countermeasures from the internal and external of commercial banks in China.On the one hand,internal optimization of the capital structure of commercial banks,on the other hand,external optimization of the business environment in which commercial banks are located,in order to improve the business performance of commercial banks in China.