| Summary: | 碩士 === 國立臺北大學 === 企業管理學系 === 101 === In order to integrate with world financial system, China has been actively reformed financial system in the last 20 years. For the banking industry, the reform includes listing、foreigner investment policy、joint-equity. Bank can raise more funds from capital market after IPO which makes the finance flexibility. Although China has actively done financial reforms, many norms are still not as completely open and mature as western countries. Speaking of restrictions and norms on the financial market, there is still the difference between china authority and other countries. Under such unusual influence of national style, is the impact of IPO in China different from other countries?
Difference from past literature which focus on illiquidity、credit、efficiency, this study analysis the impact of risk. The study uses the China banking industry to analysis the changes in assets and capital of various risk indicators before and after the IPO. Asset risk indicators include non-performing loan ratio and coverage ratio. Capital risk indicators include capital adequacy ratio and capital buffer.
The empirical evidence shows：
1.Asset risk：
IPO can improve NPL and coverage ratio. In terms of cost to income ratio, banks have to pay additional cost to retrieve because of excessive non-performing loans, and that will lead to increase the operating costs. Moreover, tree types of banks are positively significant to NPL. The State-owned banks which increase their risks may have to loan to the state-owned enterprises strategically under the pressure of government’s intervention. In order to improve business performance, joint-stock banks and city banks may loosen the loan approval and loan to high-risk demanders, which increase their risks.
2.Capital risk
Capital from IPO can indeed improve the CAR and capital buffers. Increasing liquidity will reduce capital buffer. In terms of asset scale, the bigger bank has fewer buffers. Excessive cost will reduce the buffer which bank prepares. Besides, China banking industry will prepare more buffers in economy booms. When the equity of bank is more concentrated, the capital risk indicators will be better. Three types of bank are positively significant to CAR. The buffer which is composed of leverage ratio is positively significant to three types of bank. The result shows that equity increase after IPO which makes the buffer increasing.
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