The Impact of Capital Structure on Profitability

DOI

10.2991/978-94-6463-638-3_27How to use a DOI?

Keywords

Commercial Bank; Capital structure; Liability; Profitability

Abstract

This study examines the relationship between the capital structure and profitability of Chinese banks. This paper collects data from the Chinese banking sector from 2008 to 2021 for analysis. The findings are that the debt-to-asset ratio negatively impacts bank profitability across the entire banking industry. The empirical analysis remains robust when using fixed effects. To address the issue of heterogeneity, this paper considers the impact of the debt-to-asset ratio on bank profitability under different capital turnover rates. Findings are that the impact of debt-to-asset ratio on bank profitability varies in different groups.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Xuanji Shao
PY  - 2024
DA  - 2024/12/30
TI  - The Impact of Capital Structure on Profitability
BT  - Proceedings of the 5th International Conference on Economic Management and Big Data Application (ICEMBDA 2024)
PB  - Atlantis Press
SP  - 272
EP  - 279
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-638-3_27
DO  - 10.2991/978-94-6463-638-3_27
ID  - Shao2024
ER  -