The Research On Commercial Banks’ Governance, Business Innovation And Performance Evaluation System

With the development of financial liberalization, economic globalization and overallopen policy to foreign capital bank, the state-owned banks confront with greatcompetitive pressure and take measures to improve core competitive power and chasehigher economic performance. Innovation drives the long term economic performance ofcommercial banks, therefore in the relationship studying of commercial bank corporategovernance and economic performance, through the innovation economics analysis thebest method of corporate governance can be found. Commercial bank economicperformance depends on how commercial banks distribute the resources they control,while corporate governance focuses on corporate resource allocation and profitdistribution. This thesis defines commercial bank corporate governance as: in thecommercial bank operation, who can make great investment decision, what kind ofdecision and how to distribute the investment revenues. This thesis focuses on two points,the first is what kind of commercial bank corporate governance can optimize resourceallocation, and the second is how commercial bank resource allocation effects on itseconomic performance.This thesis starts from corporate governance, uses the corporate theory, innovationeconomics theory, performance evaluation theory as basic foundation, and econometricsregression mode, data encircle analysis, balance score card and game model as studyingtools, systematically discusses the relationship between commercial bank corporategovernance and innovative resource allocation, commercial bank corporate governanceand its economic performance, and commercial bank performance evaluationimprovement etc. Concretely, this thesis studied the following problems:First of all, the main corporate governance theory is stockholder theory andstakeholder theory, but stakeholder theory as a slogan rather than a real challenger. Boththeories agree that long term residual return is produced by diverse production factors.But they disagree on how the residual return should be distributed and what differentdistributions could impact corporate performance.This thesis figures out that both theories neglect how residual return is produced byresource exploitation, and further, innovative resource allocation is the best choice to gainresidual return. Innovation is an uncertain process of constant accumulation and teamdevelopment, and in essence it is resource reallocation and reuse. To commercial banks innovation means banks can provide financial products with maximum return and under afixed risk. Therefore innovative resource allocation has three characters:①Strategic,commercial bank breaks present technology and market condition, and perform morereasonably in resource allocation on the benefit of long term economic performance.②Developing, innovation process has an uncertain return but needs large amount of humanresource, materials and financial resource input.③Organizing, innovation process isalso a team learning work, so it needs the commercial bank to clearly divine team workand to integrate individual experiences.In the following, this thesis continues to analyze the three qualifications that canpromote innovative resource allocation of commercial bank governance system: Firstly,organization integration–To integrate “sufficient inspiration” and “knowledge” fromresource into technology development and utilization according to organization rules；Secondly, financial commitment–To provide plenty “financial” support to this uncertaininnovation process according to development rules. Thirdly, insider control--To bringcorporate strategic control to those insiders who are competent and willing to allocateresources on innovative investment according to strategic rules.In the performance evaluation of commercial banks, this research considers thatscientific management performance evaluation will be conducive to the different interestsof managers and owners of commercial banks with consistency, so as to promote thelong-term development of the commercial banks. The evaluation of corporate governancehas been the formation of a more systematic system, so the establishment of corporategovernance reflects the part of business innovation and performance evaluation system,organizational integration, financial three aspects of support and bankers, the spirit of atotal of12indicators to evaluate and movement AHP method conduct an empiricalanalysis of specific banks.Finally, on the base of summing up the whole thesis the studying defects and furtherquestions and fields to be researched have been pointed out.