Research On The Corporate Governance And Performance Of Commercial Bank On The Perspective Of Stakeholders

In 1990 s, a series of banking and global financial crisis made the corporate governance of commercial banks become a more and more important issue.But the papers’ results may be various with different theoretical basements. The key point of this paper is “the stakeholders’ co-governance of commercial banks can improve the bank performance”, we made sense of it by strict theoretical analysis and empirical tests.On the theoretical perspective, this paper list the related researches of this field. And then we define the "stakeholder Governance" as four parts: shareholders, creditors, independent directors, managers, employees, and government. With reviewing the banks’ particularities in corporate governance, we compared the governance way of "stakeholder Governance " and "shareholders first" and we believe that the corporate governance of a bank should focus on "stakeholder Governance" instead of "shareholders first". Then the paper analyze the intense relationship between the banks’ performance and the "stakeholder Governance". What’s more, we make some new explorations with considering the new trend of stakeholders’ governance.The first is that we study the institutional investors’ participating in a bank governance as an independent part, unlike the previous studies. Since 2010, the government leaded Banks to corporate by "financial restructuring- strategic investment-public listing’, the implementation has attracted a large number of institutional investors, and nowadays, it becomes the bank’s key measures. Considering the new trend, we separate the institutional investors from shareholder governance, and this is our first improvement.The second is to highlight the role of independent director in the bank governance. This paper believes that in banks, independent directors are most likely to represent the interests of medium and small shareholders and creditors, independent directors participate in the decision-making, supervision of the board of directors on behalf of the bank creditors. To study of the problem, focus on the independent directors proportion is not enough, this paper joined the independent directors’ heterogeneity in age, sex, educational background, professional, professional background, term, and number of part-time jobs, we attempt to improve the governance mechanisms with independent directors’ participating. In addition, we effectively solved the creditor governance problems which is hard to quantify in the empirical research by making the independent directors as a representative of creditors.The third is the construction of a theoretical analysis frame of stakeholder governance good for banks’ performance, which consists of the following four aspects:(1)analysis on conjunction between the theory of stakeholder and commercial bank governance;(2) definition of commercial banks’ stakeholders;(3) analysis of influence of stakeholder governance on bank’s performance;(4) cooperative game analysis on commercial bank’s stakeholder governance. Thus cones the conclusion of “the stakeholders’ co-governance of commercial banks can improve the bank performance”.In the empirical section, we improve the point of "stakeholders’ co-governance can improve bank performance" step by step :first of all, we extract the significant indexes which have positive impacts on bank performance through regressions, we define the index as effective stakeholder governance index. Secondly, we obtained the comprehensive index which reveal the relevant relationship and internal structure between effective governance indexes by principal component analysis, the difference between the two comprehensive governance indexes is whether considering the exist of banking regulation(yes id G and no is G*).Making regression of the two indexes to the performance respectively, we know that the stakeholders co-governance will help improve bank performance. And the banking regulation is necessary for the bank performance’s improvement, which corresponds to the cooperative game analysis’ results. What’s more, the regression coefficient of the effective stakeholder governance indexes is lower than the comprehensive indexes’. It means the effect of stakeholders’ co-governance is better than the separate stakeholder governance. So the bank should give emphasis on stakeholder co-governance. Finally, this paper puts forward a frame of how to improve the performance of Banks stakeholders’ co-governance and the corresponding policy recommendations.