The Empirical Study On The Influence Of Corporate Governance On City Commercial Banks' Risking-taking In China

City commercial banks play an increasingly important role in the whole national financial system nowadays,while its imperfect corporate governance is still a relatively prominent problem,which is the inherent cause of bank risk.The risk-taking level of city commercial banks in China is not only related to its own development,but also determines the interests of depositors,even the economic stability of the whole country.From the perspective of corporate governance,this paper is aimed to find out the influence factors and the related theory of China's city commercial banks' risk-taking behavior.So that we could enrich the theory of corporate governance of city commercial banks and improve the city commercial banks' corporate governance structure in the future.In the empirical studies part,this paper uses the dynamic panel model and GMM estimation method to do the empirical study on the influences of internal and external corporate governance on city commercial banks' risk-taking.With research sample of 114 city commercial banks ranging from 2005-2016,the empirical results show that:(1)the ownership concentration and the city commercial banks' risk-taking are negatively correlated;(2)equity balance degree can reduce the risk-taking of city commercial banks;(3)government ownership has no significant impact on the city commercial banks' risk-taking level,the development and politics views of government ownership both exist;(4)The foreign investors of the city commercial banks are mostly foreign banks and the introduction of foreign capital is conducive to reduce the risk level;(5)the bigger the size of the board of directors,the lower the risk a city commercial bank bears;(6)the size of the board of supervisors is negatively related to the overall risk of city commercial banks,but it can not effectively reduce the credit risk;(7)increasing the proportion of independent directors and external supervisors can not significantly reduce the risk of city commercial banks,which means these two systems can not work well in China now;(8)on the side of external governance,the constraint of depositors has a significantly negative relation to the risk-taking level of city commercial banks.In conclusion,according to the theoretical and empirical analysis results,by taking the current situation of city commercial banks and related policy background into consideration,this paper puts forward suggestions to improve corporate governance in order to reduce the risk taking level of China's city commercial banks.