To Study The Institutional Investors And The Commercial Bank Performance

With the increase of institutional investors in proportion of shareholdings in commercial banks of China, the institutional investor becomes one of significant factor in corporate governance of commercial banks. In fact, the more shareholding ratio in banks that the institutional investors can represent, the more possible they can make a positive operating decision and can develop effect of shareholder activism when bank management running poor. Currently, China is in the stage of deepening reform in financial system, the banking section becomes not only the key part of the reform but also the major factor of resource allocation. In addition, as the absolute core of the financial system in China, the healthy and stable banks are essential. As the result, for promote the healthy and stable development of the financial system in China, it is significant that the institutional investors participate in corporate governance of bank.This article aims at Chinese listed banks. In addition, it analyses the different ways of institutional investors to participate in corporate governance of bank. Moreover, the article explores the relationship between the number of institutional investors, the shareholdings of institutional investors and the operation performances of Chinese listed banks, so as to provide the corresponding recommendations in the development of institutional investors and the performance of banks.The article depends on the theory of ownership structure and principal-agent theory.From the perspective of commercial banks, this article analyses the influence on the institutional investor who participate in performance of corporate governance of bank.Form two aspects such as institutional investors and commercial banks; the article illustrates the internal and external factors of institutional investors who participate in corporate governance of banks, meanwhile it analyses the internal and external way that institutional investors participate in corporate governance of bank and the specific impact.Based on bank corporate governance theory, the article selects the representative indicators from banks so as to establish the comprehensive performance index system. In addition, combining data of sixteen listed banks from 2007 to 2013, the article uses the empirical analysis to analyses the change between institutional investors and performance of corporate governance of banks, and finally figure out the impact of institutional investor on bank performance.Finally, according to the result of theoretical analysis and empirical analysis in institutional investors affect performance of corporate governance of the bank, the article provides corresponding policy recommendations from several aspects, such as market development, government regulation and policies. Moreover, the article provides essential theoretical supports on areas of institutional investors who actively participate in corporate governance of bank and improve performance of bank.