what constitutes a valid set of performance criteria. For instance, Yu et al. (2013) have suggested that studies on financial performance should include multiple criteria analysis. This multidimensional view of performance implies that there are different models or patterns of relationship between corporate performance and its determinants (Adams & Buckle, 2000). This research will consider the effect of both the financial measures and non-financial measures on the financial performance, which further improve the evaluation system of financial performance of listed companies and provide useful lessons for various types of evaluation subjects.
Practical Significance
The commercial banking sector plays a significant role in enhancing the country economy, and providing critical services for people in China. Using the results of this research, the government management department can easily understand the operating performance of the listed company, correctly formulate the objectives and policies for economic development, and better complete the functions of macro-control. Using the results of this research, the company managers can have a clear understanding on the position of the company in the industry, and improve company’s management. Using the results of this research, the investors can reduce investment risks and increase returns.
1.3 Objective of the Study
The commercial banking sector plays a significant role in enhancing the country economy, and providing critical services for people in China. This research will study the factors affecting the financial performance of bank industry. The pursuit of market share and customer satisfaction are the effective way for enterprises to increase profits. The profits are the most important part of the firm performance. Thus, this study aims to conduct empirical research by using systematic and complete data to investigate the effect of market share and customer satisfaction on firm financial performance in the financial service industries.
1.4 Research hypotheses
This study aim to conduct empirical research by using systematic and complete data to investigate the effect of market share and customer satisfaction on firm financial performance in the financial service industries of China. Under this aim, the hypotheses of this research are as follows:
Hypothesis 1 (H1): There is a positive relationship between customer satisfaction of the bank and its corporate financial performance.
Hypothesis 2 (H2): There is a positive relationship between the market share of the bank and its profitability.
1.5 Dissertation structure
The dissertation structure of this research are shown as follow. The aim of this research is to conduct empirical research by using systematic and complete data to investigate the effect of market share and customer satisfaction on firm financial performance in the financial service industries. The first part will show the background and research objective of this research. The second part will provide the literature review and basic theory review on the effect of customer satisfaction and market share on the financial performance. The third part will provide the research methodology on research design and data collection. The fourth part will take regression model on the effect of customer satisfaction and market share on the financial performance, and discuss the findings of this research. The last part will provide the conclusions and recommendations of this researc
