Efficiency of Chinese Commercial Banks and the influence of equity financing

Abstract

The study analyses the efficiency of listed commercial banks in China and the actors influencing the efficiency of equity financing of listed banks in China. Firstly, the work was carried out by collecting data from 21 commercial banks in China with different attributes that are representative of Chinese commercial banks in 2017-2021 and selecting key indicators of the efficiency value of Chinese commercial banks. The DEA-BCC model was then used to calculate static efficiency values and the DEA-Malmquist model to calculate dynamic efficiency values, and the results were analyzed to show that Chinese urban commercial banks have high efficiency values. Finally, the article uses a Tobit regression model to analyses the factors influencing the efficiency of equity financing of listed commercial banks in China. The results show that total net asset margin, commercial bank attributes and gearing ratio have a significant positive impact on the efficiency value of commercial banks, while deposit to loan ratio and shareholders' equity ratio have a significant negative impact on the efficiency of commercial equity financing in China.