The impacts of institutional characteristics on capital structure: Evidence from listed commercial banks in China

© 2017 Inderscience Enterprises Ltd. In China, bank capital structure is subject to the minimum capital requirements regulated by the Basel Accords. Nonetheless, with the rapid development of the Chinese banking sector, institutional characteristics have an impact on how banks finance their operatio...

Full description

Saved in:
Bibliographic Details
Main Authors: Phassawan Suntraruk, Liu Xiaoxing
Other Authors: Mahidol University
Format: Article
Published: 2018
Subjects:
Online Access:https://repository.li.mahidol.ac.th/handle/123456789/42168
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Mahidol University
id th-mahidol.42168
record_format dspace
spelling th-mahidol.421682019-03-14T15:03:12Z The impacts of institutional characteristics on capital structure: Evidence from listed commercial banks in China Phassawan Suntraruk Liu Xiaoxing Mahidol University China Life Property and Casualty Insurance Co. Ltd. Business, Management and Accounting Economics, Econometrics and Finance © 2017 Inderscience Enterprises Ltd. In China, bank capital structure is subject to the minimum capital requirements regulated by the Basel Accords. Nonetheless, with the rapid development of the Chinese banking sector, institutional characteristics have an impact on how banks finance their operations and growth. Therefore, the purpose of this study is to explore the institutional factors that influence the capital structure of listed commercial banks in China. Using unbalanced panel data of 25 listed Chinese commercial banks during the period of 2003 to 2015, the results indicate that Chinese listed commercial banks with more profitability or those having a low percentage of shares owned by the largest shareholders are less likely to employ debt financing. Moreover, this study shows that the size of Chinese listed commercial banks increases with debts. The results of this study will assist managers of listed commercial banks to create adequate capital structure decision-making to further maximise bank value. In addition, both investors and depositors will be able to judge how safe the bank capital is, after understanding the determinants of capital structure, which will help in reducing their risk exposure. 2018-12-21T07:03:56Z 2019-03-14T08:03:12Z 2018-12-21T07:03:56Z 2019-03-14T08:03:12Z 2017-01-01 Article Afro-Asian Journal of Finance and Accounting. Vol.7, No.4 (2017), 337-350 10.1504/AAJFA.2017.087504 17516455 17516447 2-s2.0-85031724797 https://repository.li.mahidol.ac.th/handle/123456789/42168 Mahidol University SCOPUS https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85031724797&origin=inward
institution Mahidol University
building Mahidol University Library
continent Asia
country Thailand
Thailand
content_provider Mahidol University Library
collection Mahidol University Institutional Repository
topic Business, Management and Accounting
Economics, Econometrics and Finance
spellingShingle Business, Management and Accounting
Economics, Econometrics and Finance
Phassawan Suntraruk
Liu Xiaoxing
The impacts of institutional characteristics on capital structure: Evidence from listed commercial banks in China
description © 2017 Inderscience Enterprises Ltd. In China, bank capital structure is subject to the minimum capital requirements regulated by the Basel Accords. Nonetheless, with the rapid development of the Chinese banking sector, institutional characteristics have an impact on how banks finance their operations and growth. Therefore, the purpose of this study is to explore the institutional factors that influence the capital structure of listed commercial banks in China. Using unbalanced panel data of 25 listed Chinese commercial banks during the period of 2003 to 2015, the results indicate that Chinese listed commercial banks with more profitability or those having a low percentage of shares owned by the largest shareholders are less likely to employ debt financing. Moreover, this study shows that the size of Chinese listed commercial banks increases with debts. The results of this study will assist managers of listed commercial banks to create adequate capital structure decision-making to further maximise bank value. In addition, both investors and depositors will be able to judge how safe the bank capital is, after understanding the determinants of capital structure, which will help in reducing their risk exposure.
author2 Mahidol University
author_facet Mahidol University
Phassawan Suntraruk
Liu Xiaoxing
format Article
author Phassawan Suntraruk
Liu Xiaoxing
author_sort Phassawan Suntraruk
title The impacts of institutional characteristics on capital structure: Evidence from listed commercial banks in China
title_short The impacts of institutional characteristics on capital structure: Evidence from listed commercial banks in China
title_full The impacts of institutional characteristics on capital structure: Evidence from listed commercial banks in China
title_fullStr The impacts of institutional characteristics on capital structure: Evidence from listed commercial banks in China
title_full_unstemmed The impacts of institutional characteristics on capital structure: Evidence from listed commercial banks in China
title_sort impacts of institutional characteristics on capital structure: evidence from listed commercial banks in china
publishDate 2018
url https://repository.li.mahidol.ac.th/handle/123456789/42168
_version_ 1763496227883712512