Wealth Management Ability,Relational Capital and Operational Performance——An Empirical Study on Chinese Commercial Banks

Abstract

With the continuous rise of China's economic aggregate and the annual growth of national income, wealth management services of commercial banks have developed rapidly. By using annual data of 61 commercial banks in China from 2014 to 2018, this study employs the panel data model to analyze the influence of wealth management ability of commercial banks on business performance from the perspective of relational capital. The empirical results show that there are different effects of wealth management ability and relational capital on operational performance. First, issuing ability of wealth management has a negative impact on business performance, but it is not statistically significant. Its interaction with relational capital has a significant and positive effect on business performance. Second, risk control ability of wealth management has a significant and positive effect on business performance, whereas its interaction with relational capital has a significant and negative impact on business performance. Third, the richness of wealth management products has a significantly positive effect on business performance. And the interaction with relational capital also has a significantly positive effect on business performance. Finally, the normative ability of information disclosure has a significantly negative impact on business performance. However, its interaction with relational capital has a positive effect on business performance, but it is not statistically significant.