An Empirical Study on the Capital Structure Determinants of China's Banking Sectors

Based on capital-assets ratio and capital adequacy ratio,this paper uses panel data of eight joint-stock commercial banks in 1998—2005 to study the determinants of banking sectors' capital structure from six aspects including risk,profit,size,cycle,growth and listed or not.The research findings indicate that capital-assets ratio with bad loan ratio and ROA have significant positive relation to capital-assets while ratio with bank size has a significant negative relationship;capital adequacy ratio with ROA and whether listed are significantly positively related;capital adequacy ratio with risk assets amount,bank size and GDP growth rate are significantly negatively related.The research result also shows that assets growth rate has no effect on capital-assets ratio and capital adequacy ratio.