Determinants of profitability of china’s domestically listed commercial banks: panel evidence for the period between  

Oleh:

Zhou, Chao ; Kijboonchoo, Thongdee

Jenis: Article from Proceeding
Dalam koleksi: SIBR-Thammasat 2014 Conference on Interdisciplinary Business & Economics Research June 5th- 7th, 2014 di Emerald Hotel Bangkok, page 1-14.
Topik: China listed banks; Profitability; Panel Data; Tobin’s q
Fulltext: b14-168.pdf (331.01KB)

Isi artikel

The large commercial banks in China have increased impact on Chinese economy. However, the current market situation contains some constraints that go against the sustainable development and profitability generating of Chinese large commercial banks. The purpose of this study is to explore the determinants of 16 China listed commercial banks' profitability, which are measured by: internal, industry-specific and macroeconomic determinants. This study applied panel data method and 16 listed banks over period of 2007-2012. Descriptive analysis and the fixed effect model were employed by using Econometrics Views (EViews) to get reliable and accurate results. The results showed that the profitability of listed commercial banks in China not only related with bank internal characteristics, but also closely related with industry and macroeconomic variables. The ability of commercial banks receive deposits had a positive correlation with the banks' profitability, while provide too much loans will reduce the liquidity of banks and also will impact the banks’ profit. Development of bank sector and stock market, real interest rate and other external macroeconomic variables had significantly affected the bank's profitability. Moreover, a higher interest rate, the more profits that banks obtained. In addition, the more unemployed workforce significantly reduces the bank's profitability.

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