| More than a dozen Chinese banks have introduced strategic investors by selling part of their stake since China's accession to the World Trade Organization in 2001. The introduction of foreign strategic investors, has become one of the important measures especially for the four state-owned commercial banks in their joint-stock transformation process. In theory, the foreign strategic investors, not only can help Chinese banks achieve the diversification of ownership structure and improve capital adequacy ratio, but also can promote them to improve corporate governance, risk management, internal control and innovation capability. However, a problem has arisen on how to value the necessity and impacts of introducing strategic investors for corporate governance of domestic banks as the development of commercial banks reform in China.The paper firstly gave introduction of some related theory and studies on governance effect of introducing strategic investors in order to study the systematic analysis of the problem. Foreign studies on this topic mainly focused on examining the introduction of strategic investors themselves and their conduct. While the domestic research focused on the impact of corporate governance mechanisms but at an initial stage. Therefore, the present research about strategic investors of commercial banks is in the active period:why strategic investors are going to be shareholder; What is the relationship between the introduction of foreign strategic investors and the reform of domestic banking industry; What kind of effect from the introduction of overseas strategic investors. Through a review of the existing research, we found that most of the research are lack of representativeness and comprehensiveness, At the same time, there was less literature with regard to the introduction of foreign strategic investors. Therefore, foreign investors can give a governance effect for domestic banks which presented in this paper has a very good research value. Given the enormous size of China's financial markets, foreign strategic investors will be subject to the control of power constraints, and they are unlikely to replace local banks. On the contrary, foreign banks can join commercial banks of china as minority shareholders or strategic investors and take part in commercial bank management, system construction, risk management and decision making, etc with "voice mechanisms". According to this thread, this paper analyzed the role of the introduction of foreign strategic investors from a theoretical point. Meanwhile, combined with governance conditions, the paper show the necessity for the introduction of foreign strategic investors, All of which constitute the main logic line of this paper.Follow this, logic, this paper chose eight listed banks as sample, and combined with corporate governance evaluation system to construct Commercial Bank Governance Index, the research method is principal component analysis. By considering a range of factors including the overall governance of listed companies and bank size, we used panel data regression model to study the influence of the controlling presence of directors and corporate governance of listed banks in China. The results show that there exist significant positive correlation between the performance of listed banks and the corporate governance index, it suggested that good corporate governance will inevitably bring good performance of bank, but there is no significant positive correlation between the ownership percentage of foreign strategic investor and the corporate governance of listed banks, but the ownership percentage have significant positive effect on the performance of banks; there exist significant positive correlation between the presence of foreign strategic directors and the corporate governance of the banks, and the director will improve the performance of bank; but whether the holding shareholders of strategic investor is controlling shareholder had no significant impact on the bank corporate governance and performance. Indeed, this model came the result that the introduction of strategic investors would enhance the overall corporate governance of commercial banks. Tis model found that the introduction of strategic investors can enhance the overall corporate governance of commercial banks, the introduction of strategic investors is very important in the stock exchange market, it's necessary to meet the capital adequacy ratio for commercial banks, and thorgh the diversified ownership structure, it's helpful to solve the principal-agent problem. But because there are many share holders that can influence the performance of bank, it's difficult to fully interepret and harness these factors by the research capacity of this paper, which will weaken the explanatory power of this model.In addition, the reliability of quantitative governance indicators is subject to the disclosure of bank information, which will weaken the empirical research capacity.The paper is based on the analysis of the model, and look around the international context as a supplement, it examined the lessons by introduction of strategic investors to participate in governance of emerging market, and how the impact on the commercial banks, the study showed that commercial banks in various countries had different condition, background, goal and constraint, and thus should select different strategic investors according to their own special strategy.On this basis, we gave policy recommendations, the goal of introduction of foreign strategic investors for commercial banks is to establish a standard based on the modern bank corporate governance, and enhance the core competitiveness of Chinese banks. At first, we can not depend only on the foreign strategic investors, still can not completely excluded foreign commercial banks, we should enhance their core competitiveness and learn the management skills and experience through the cooperation with foreign commercial banks. There shoule be proper standard to select foreign strategic, it is necessary to consider the motive of strategic investors, and should consider the financial strength and management capabilities of the strategic investors. The paper selected the case of Chinese Construction Bank chose the Bank of America as a strategic investor, the case is appropriate for this paper. After the introduction of strategic investors, it need full integration with foreign strategic investors. To establish a true partnership with strategic investors is not easy, it require a process to integrate into the business and culture, through the cooperation with foreign investor, we can promote the reform and development of commercial banks. |
