Research on the Value Creation Ability of Chinese Commercial Banks

Author: Guan Xinhong / Country: Mainland China
Publisher:
Publish Date: 2006-07-01
Features: The value-creation capability of commercial banks is the productive capacity that fully considers the opportunity cost of capital, and it genuinely reflects the efforts of bank managers in adding value for owners. Evaluating value-creation capability can provide accurate benefit-oriented signals for optimizing capital allocation and liquidity in commercial banks, while also helping to prevent short-sighted behavior by managers pursuing short-term high profits. Based on a detailed analysis of the influencing factors of commercial banks' value-creation activities, this paper explores comprehensive and multi-faceted approaches to enhancing the value-creation capability of commercial banks. Additionally, it conducts an empirical analysis of the comprehensive performance of commercial banks in China in the real-world context, proposing that a strong value-creation capability is a key factor in cultivating and acquiring core competitiveness for commercial banks.