An Empirical Study On Impact Of Bank Board Structure Character To Its Performance

Corporate governance structure is an important theoretical and practical subject, especially the setting of the board of directors has always been focused by the researchers. For a long time, however, corporate governance of banks tend to be ignored due to industry regulation. From the 90s of the 20th century, with the global financial deregulation and the frequency of the international financial crisis, corporate governance of the commercial banks has raised widespread concern among theorists. What role does board governance play in the corporate governance of commercial banks? How the bank board characteristics influence its firm performance? Research on this issue will have more special and important meaning in the day of global financial crisis. This paper is trying to understand the relationship between the board features of the banking industry and its business performance through some empirical researches.This article is divided into five parts. The first part is an introduction; the second part is a review of the literature at home and abroad; the third part is the theory and the mechanisms between the two, trying to find the theoretical basis for the empirical research; the fourth part focus on the empirical analysis, which used panel data of 21 listed banks in China between 2007 and 2009, analyzing the relationship between the banking board characteristics and its performance using regression model; the last part is the conclusion and the policy recommendations.The main conclusions are as follows: 1. Size of the Board of Directors of listed companies in the banking sector has little correlation with bank performance. 2. Relationship between structure of the Board of listed companies in China’s banking industry and bank performance showed strong correlation. 3. Both committee number under the board and the non-salaried director number showed positive with the bank performance.