Empirical Analysis of Ownership-Performance Nexus in Chinese Banks

Abstract

To explore the relationship between ownership structure and bank performance, the authors run regressions based on panel data and analyze the results by cross section weight method. The corporation attribute of banks makes corporate governance a vital link in this nexus. Results of empirical research suggest that ownership structure decides the nature and extent of this nexus. Reasonable and varied ownership structure in commercial banks contributes to acquire high level corporate governance and better bank performance.