Research on the Efficiency of Introducing Strategic Investors in Commercial Banks in China—Based on the Panel Data Model

Abstract

In order to solve the problem of insufficient capital adequacy, haphazard internal control, the lower international competitiveness and others, the domestic commercial banks have introduced strategic investors. In order to study whether efficiency of introducing the strategic investors is improved, this paper carries out panel data regression analysis, using data of such banks as: the China Construction Bank, Agricultural Bank and other 9 banks which have already introduced strategic investors. Then, the result shows that although the introduction of strategic investors for bank profitability is not significant. It is conducive to improve the bank's financial innovation ability, cost control ability and risk management capabilities in the overall performance of bank efficiency; and with the increasing investment and shareholding ratios in strategic investors, the beneficial effect to improve the efficiency of China's commercial banks becomes more obvious. On the basis of empirical research, this article puts forward some suggestions in the management and introduction of strategic investors.

The Impact of Foreign Strategic Investors’ Shareholding Changes on China's Commercial Banks under the Impact of International Liquidity Crisis—Targeting at Bank of China and its Foreign Strategic Investors in Financial Crisis

“…In the middle of July of 2008, two famous tycoons of mortgage loans in America, Freddie Mac and Fannie Mae, suffered a big loss of over 70 billion dollars and were taken over by US government in the end. However, the US government couldn't always be the saver [3]. With the rejection of saving Lehman Brothers Holdings, it finally broke down and aroused huge waves in financial market, domestically and internationally.…”