Empirical study of the relationship between the capital structure and performance of listed banks in China on the basis of three characteristics

In recent years, most of domestic commercial banks have been listed, which caused a big change of their capital structures and performances. On the basis of the commercial banks´ profitability, liquidity and security (abbreviated as “three characteristics”), this paper examines the comprehensive performance of each commercial bank and the influence of capital structure on its comprehensive performance using the principal component analysis method. The results show that the state-controlling way can improve the performance of listed commercial banks. The enhancement in the core and subsidiary capital ratio is the requirement of coping with the capital supervision and improving the performance of a commercial bank.