Empirical Analysis Of Chinese Listed Commercial Bank Corporate Governance And Performance

Since the ninety s of the20th century, financial crisis happened frequently andImpacted on the world economic development. The outbreak of the Asian financialcrisis of1997and the financial crisis of2008brought great negative effects to theworld financial industry and the real economy. The world financial industry havehaven a hit at a time, the international bank merger and reorganize constantly. Thebank bankruptcy and reorganization is not only the structure of an external force butalso a lot of defects from the bank inside. Bank corporate governance level is low,insufficient awareness of risk control lead to the deterioration of the quality of bankassets and the banks bankrupt. The commercial banks are the core component of thefinancial system in our country, the stand or fall of comprehensive performance ofcommercial Banks not only affect the stability of the financial system but also has asignificant impact to the stable operation and development of the entire countryeconomic. In the recent financial crisis, although our country banking industry didwell on the resist risk ability, the prospect banking industry is not optimistic in thefuture. The commercial banks will face the bank bankruptcy policy of our Countryand a bubble risk of real estate, and the internal corporate governance of CommercialBanks have also many problems, such as the state-owned stake,the lack of utility inthe board of directors and the board of supervisors governance, and the seniormanagement incentive mechanism doesn’t work. These all produce potential threats tothe healthy development of commercial Banks in long time. The corporategovernance of commercial bank should be known completely and to find the way ofthe internal corporate governance enhance，This will have important theoretical andpractical significance To the bank competitiveness and survival ability.Based on this, firstly, this article complete the Induction and summary of the relatedresearch literature at home and abroad, secondly, this article summarized the relevanttheories of corporate governance, then to analyze the particularity and the presentsituation of our countries bank industry, in the end, the article select the total of86samples data from2007to2012from the commercial Banks in China. To study therelationship between corporate governance and bank performance, it will have aregression analysis between the bank of the ownership structure, board characteristics,characteristics of the board of supervisors and executive pay and bank performance.In addition, in terms of executive equity incentive, only five Banks implement shareholding in our country, And the incentive system of five bank executives equityis not perfect, because the development of executives shareholding is not mature,the impact on bank performance may not be obvious, in order to study theRelationship between the senior management personnel shareholding and these fiveBanks operating performance, it will have alternate executive holdings by regressionanalysis on bank performance in this paper. The empirical study results show that theequity concentration of the listed commercial Banks in China is negatively related tothe bank business performance; The second largest shareholder and the first bigshareholder shareholding ratio is significant negative related to operatingperformance; The board size and the number of board meeting business performancehas significant negative correlation relationship with Bank performance; theindependent directors proportion was significantly positively related to businessperformance; The size of the board of supervisors and the number of meetings of theboard of supervisors were not associated with business performance; There is nocorrelation between executive pay and bank performance. The number of executivesis not related to Banks operating performance, the executive’s shareholding ratio ofthe total number of shares is negatively related to the bank business performance.