Research On The Impact Of Hua Xia Bank Capital Structure On Operating Performance

As the process of global economic integration continues to advance,the financial industry is also showing a trend of globalization.China's financial institutions are more closely connected with foreign financial institutions,and a pattern of international financial integration is taking shape.However,commercial banks will face the dual pressure of domestic bank competition and foreign bank competition.The emergence of Internet financial projects has brought challenges to traditional banks.Increasingly fierce industry competition and a complex capital environment have placed higher demands on China's commercial banks,and the banking industry is facing huge challenges.Therefore,under such a background,only by continuously improving its capital structure and improving its ability to resist risks and operating level can Huaxia Bank enhance its competitiveness and achieve longer-term development in the fierce competition.This paper has made innovations in research objects and research indicators,and selected Huaxia Bank as the research object to study the impact of the capital structure of a single commercial bank on operating performance.Factor analysis was used to obtain comprehensive operating performance.First of all,based on the relevant theories of capital structure and operating performance,and drawing on the Basel Agreement's regulations on commercial bank capital,the Bank's capital structure is measured in terms of core capital and subsidiary capital,and combined with China's commercial bank performance.The characteristics of the evaluation system measure Huaxia Bank's operating performance from four aspects: profitability,liquidity,safety,and growth,and a detailed analysis of the status of Huaxia Bank's capital structure and operating performance.This paper selects relevant data of Huaxia Bank from 2006 to 2018,selects comprehensive operating performance as the explanatory variable,selects capital structure as the explanatory variable,calculates the comprehensive operating performance through factor analysis,and uses factor analysis to extract the principal components to solve the respective variables and the multi-collinearity problem between the control variables,the two principal components extracted and the comprehensive operating performance were analyzed by regression,and the principal components were restored based on the relationship between the original explanatory variables,the original control variables and the standard variables.Finally,the regression equations between the original explanatory variables,the control variables and the explained variables are obtained,and further study and analysis of the impact of Huaxia Bank's capital structure on operating performance.The study found that:(1)Core capital: the ratio of the shareholding ratio of the largest shareholder to the second largest shareholder is positively correlated with operating performance,the shareholding ratio of the largest shareholder is positively correlated with operating performance,and the shareholding ratio of the top five shareholders is positively correlated with operating performance,and the proportion of equity in core capital is negatively correlated with operating performance;(2)In terms of subsidiary capital: the proportion of subsidiary capital in core capital is negatively related to operating performance.In addition,Huaxia Bank's asset-liability ratio and asset scale also have a positive impact on operating performance.It is proposed to improve Huaxia Bank's operating performance from two aspects,one is the optimization and improvement of Huaxia Bank's own capital structure,and the other is the continuous improvement of internal and external governance environment.