CAPITAL STRUCTURE AND PERFORMANCE OF LISTED COMMERCIAL BANKS IN CHINA

Abstract

After the change of China's economic policy, great progress has been made in economic development. In this process, all kinds of commercial banks have contributed to the prosperity of Chinese economy. Commercial banks not only maximize the utilization of idle funds in the development process, but also effectively solve the problem of the ownership of funds, creating a driving force for the growth and progress of enterprises. Judging from the operation of commercial banks this year, most of commercial banks can find the right direction and achieve better results in the financial field. However, with the increasing tension of the economic situation, commercial banks are still facing some problems in the process of development.

Capital is the basis of commercial banks’ operation and the guarantee of resisting risks. Reasonable capital structure plays a vital role in achieving the financial objectives and stable operation of commercial banks. Operational performance of commercial banks is a comprehensive reflection of the management ability, profitability, solvency, capital operation ability, asset security ability and bank competitiveness of commercial banks. Therefore, the purpose of this study is to explore the relationship between capital structure and performance of listed commercial banks in China, so as to optimize capital structure of listed commercial
banks, improve operating performance and increase competitiveness. This study uses quantitative analysis. Firstly, it introduces the research background, puts forward the research objectives, research questions and research hypothesis. Through studying previous literature, research framework is put forward. Next, the methodology used in this study is described. The process of data analysis is also described in detail. Finally, according to the results of data analysis, the key findings are found and relevant recommendation are given.