THE ANALYSIS OF FINANCIAL PERFORMANCE OF NONSTATE OWNED COMMERCIAL BANK IN CHINA

Abstract

The commercial environments in China are more diverse, even though the economic is growing up than before, seems everything goes well. Actually the share price of nonstate owned commercial banks have fluctuation. A stock price represents the price at which a stock trades in relation to its price. What stock prices really mean is the value of a company's assets. So analysis of financial performance of non-state owned commercial bank is important practical significance for solving the bank’s problem. This research aims to find the factors that influence the financial performance of nonstate owned commercial bank in China. This research is quantitative research method by using secondary data taken from year 2015~year 2017 from non-state owned 10 commercial banks. Through the previous research results both from domestic and foreign, the researcher finds that most domestic researcher focus on macroeconomic, and it is rare to examine the influence of the internal bank's on share price. The researcher try to explore the financial performance of non-state owned commercial banks from the internal bank's financial ratio. The results of the empirical analysis: total asset has positive influence toward share price, capital adequacy ratio has positive influence toward share price, non-performing loan has negative influence toward share price, cost to income ratio has negative influence toward share price, nim has positive influence toward share price, loan-deposit ratio has negative influence toward share price.