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Research on Corporation Governance of China Commercial Banks

With the reform of banking industry go deeper, more commercial banks go public. At present, there are 13 listed banks in our country. Go public is the beginning of great operation for banks and the results of reform depend on improving corp
Submitted On: 04-01-2010 | Views:	Article Tools:

With the reform of banking industry go deeper, more commercial banks go public. At present, there are 13 listed banks in our country. Go public is the beginning of great operation for banks and the results of reform depend on improving corporate governance and inside control in banks as well as perfecting our macroeconomic situation, financial ecosystem. Consequently, we do some further research on corporate governance of commercial banks.This paper begin with the special features of banking industry and analysis how corporate governance influence the efficiency of banks from governance structure and governance system respectively. Then, Regression Analysis is used to found the influence factors and test whether government shareholder shows political view or develop view.We can draw some conclusions from the empirical analysis:1.The revenue structure between State-owner Banks and Joint-stock Banks and City Banks are vary from each other. The spread revenue is the main earnings for Joint-stock Banks while the non-rate revenue play an important role in City Banks.2. The top1 shareholder has reverse U relationship with efficiency of banks. The top2 to 10 shareholders have positive influence to restrain the grabbing-hand of top 1 shareholder. The capital structure has positive influence with efficiency of banks.3. The outside directors and the board of supervisor do not exert outstanding effect on efficiency of commercial banks.4. Top-management compensation has positive influence and there is common lower pay-performance sensitivity in banking industry than other industry. Agent Cost has negative relationship with efficiency.5. Government shareholder does not show political view or develop view either.6. The influence between center-government ownership and local-government ownership vary from each other. Banks holding by State-Own Corporation always have failure governance. Introduce private sector or foreign capital to banks may become the main trend of banking developing in the future.

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