Study On The Influencing Factors Of Commercial Bank Disclosure And The Effect Of Commercial Bank Disclosure On Performance

The problem of corporate governance rose from the1980s, and quickly became a hot issue concerned by a large number of areas. Meanwhile the financial turmoil caused by the financial crisis in Southeast Asia and the world banks’failures has aroused widespread concern in the banking governance since the late1990s. During this period, the importance of commercial banks seemed growing on the social and economic dimensions, and the particular differences from the other companies were increasing prominently, which caused a enthusiastic discussions of the special governance among scholars. Since then, scholars has been considering the governance on the view of the particularity of the bank, which is more complex in the background of banks, the important element in the stability and development relationship to the entire country’s economic. The nature of its financial intermediaries can lead to serious adverse selection and moral hazard caused by the existence of information asymmetry and over-regulation. Therefore, the authenticity, integrity and timeliness of disclosure of commercial banks is particularly important.Aaccording to the investigation of past literatures as well as the development of banking in this moment, five assumptions arises in this paper which is attempted to explain the different governance in the level of information disclosure level, considering the gradually increasing fo the strength of the overall disclosure of the China’s commercial banks which is in the stage of rapid development accompanying with the rapid development of its information disclosure. In the study of influencing factors of the disclosure of commercial banks, this paper proposes to assume that the larger size of commercial banks has the higher level of disclosure and the proportion of independent directors of commercial banks is a significant positive impact to the level of information disclosure. While the quality of China’s commercial bank information disclosure has a significant positive impact on bank performance removing the influence of scale. Subsequently, the disclosed information of the commercial banks’website is introduced as the proxy variable of the commercial bank information disclosure. Firstly, we use descriptive statistics to analyze the arrangements of disclosed information governance among China’s commercial banks between2008-2010, which we find in a stage of rapid development is of improved year by year. Meanwhile, we use statistical methods to analyze ranked and grouped, and find a significant gap between banks with the different inter-nature. Secondly with the analysis of panel regression model it’s showed that between2008to2010, China’s commercial banks’ information disclosure is obviously affected by its scale, while the independent director system in China falls short and the higher liquid proportion and more strong solvency the commercial bank has less strong mobility of its information disclosure. Thirdly, after controlling the impact of bank size, the state-owned, the proportion of the largest shareholders and time, we find that the information disclosure of last period has the significant positive affect on the current profitability on the1%level as well as the higher the NPL of banks the worse profitability ratio is. Finally, by introducing a concept of the hierarchical index we run a robustness test. Also we use the mlogit model and least squares model regression, and the test results further demonstrate the empirical test results.