Capital Adequacy,Stock Structure and Profitability of Commercial Banks——An Empirical Study of Commercial Banks in China

Based on the theoretical assumption about the linkage between capital adequacy and profitability of commercial banks,this paper uses data of commercial banks in China for 2004—2009 to make a regression test of capital adequacy and return on assets of 36 commercial banks.It is found that capital adequacy has a significant positive effect on profitability.In the meantime,cost efficiency and market competition also have a significant effect.By analyzing subsamples,we find that shareholding by foreign banks and non-performing loans ratio also have good explanatory capacity for the profitability of listed and national commercial banks.