INVESTIGATING PERFORMANCE DETERMINANTS OF LISTED COMMERCIAL BANKS IN CHINA

Abstract

This study uses quantitative analysis methods to explore the performance determinants of Chinese listed commercial banks based on empirical analysis. This study selected the financial data of 14 listed commercial banks for 10 years as a research sample. Firstly, the financial performance measurement index (PI) is constructed using the parameters of CAMELS, and the performance of the bank is calculated using PI; Then the structural equation model was used to test the impact of bank-specific factors, financial factors and macroeconomic factors on bank performance. The research results show that bank-specific factors have a significant positive impact on bank performance and are the determinants of the performance of Chinese listed commercial banks; macroeconomic factors have a significant negative impact on bank performance; financial factors have been confirmed to have no impact on the performance of Chinese listed commercial banks. Based on the findings of empirical research, this study also puts forward some corresponding suggestions for Chinese commercial bank managers and banking regulators and governments to improve bank performance.