CHU Liping, SU Fang:Confirmation and Motive Dissection of the Inefficient Investmentfor the Capital Invested in Bank Industry in China

Abstract：Based on the data of 61 banks in China from 2007 to 2012 and the relationship between financial capacity and financial efficiency invested in bank industry, this paper estimated whether there existed the phenomenon of “inefficient investment” for the capital invested in bank industry. The results showed that the capital invested in bank industry was inefficient investment. Especially, the investment in state-owned bank was most inefficient, while that in joint-stock bank was not so obvious. There existed “inefficient investment” phenomenon in the internal capital, debt capital and equity capital which were invested in bank industry. At last, the investment motive was analyzed. The hypothesis of “Occupy Finance Resource” was tested. The results showed that the investment motivation of “Occupy Finance Resource” was also one of reasons which caused “inefficient investment”. Debt investors owned strong motivation of “Occupy Finance Resource”. Meanwhile, 3SLS was used to prove the existence of “inefficient investment” for the capital invested in bank industry.

Key words： Bank Industry    Inefficient Investment    Investment Motive    Three-Stage Least Square

source:Finance & Trade Economics ,No.1,2015