An Empirical Study on the Soundness and Profitability of Commercial Banks—Evidence from Chinese Banks

摘要：

Using the panel data of Chinese listed commercial banks from 2008 to 2011 as the sample data, This paper makes empirical studies on the relationships between soundness and profitability of commercial banks .We firstly use Factor Analysis Method to pick up four principal components from eleven financial soundness(stability) indicators(FSIs), and then we make use of the four principal components and net profit margin that measuring profitability of commercial banks to study their relationships by Multiple Linear Regression. The empirical results indicate that there exists a significant linear relationship between soundness and profitability of Chinese commercial banks, among the soundness indicators, the capital category indicators showing more remarkable linear relationship with banks profitability than other indicators.

关键词： soundness profitability commercial banks factor analysis multiple linear regression

作者: Hu Jin Zhao Dongyang Li Haihong

作者单位: School of Economics & Management, Beijing University of Chemical Technology, Beijing, China,100029 School of Economics & Management, Beijing University of Chemical Technology, Beijing, China, 100029

会议类型: 国际会议

会议名称: The 4th (2012) International Conference on Financial Risk and Corporate Finance Management(第四届(2012)金融风险与公司金融国际研讨会 FRCFM)

会议地点: 大连

会议语种:英文

页码: 76-81

在线出版日期: 2012-07-07（万方平台首次上网日期，不代表论文的发表时间）