Research On Corporate Governance Of Commercial Banks

The "subprime crisis" originated in the United States In 2008 as a sign, the issues of corporate governance related to commercial banks once again become the focus of academy and related sector. The efficiency of corporate governance in commercial bank,as well as the management and incentive mechanism of top executives,has become the hot topic of corporate governance research. Because the structure of assets and liabilities of commercial bank is significantly different from other industrial enterprises,the proportion of the shareholder’s own capital in the total captital is relatively low, with a higher level of financial leverage. At the same time, the commercial bank is facing a more stringent requirement of the industry access,which enhances the value of the franchise value of banking. Specifically,in our country, for a long time, China has formed a financial system that the indirect financing is the main channel,and in which the commercial bank play the more important role. Therefore, from this point of view,the corporate governance of China’s commercial bank is particularly important,for the reason of maintaining financial stability, promoting the development of financial institutions, and enhancing the competitiveness of the financial system.The Basel Committee has launched a series of relevant guidance documents, which are based on the existing successful experience, and which provides the experience for reference to the worldwide. But from the point of view of international practice, the corporate governance of commercial bank, national economic, financial development and legal system environment are highly related, which making national commercial bank corporate governance appears a lot of local characteristics in the arrangements of institution and practices. Specific to each country, the commercial bank’s corporate governance needs to reflect the characteristics of its own, and in accordance with its national conditions.The corporate governance of China’s commercial bank has experience for a long time. The construction of the corporate governance of China’s commercial bank isaccompanied with the reform process of China’s financial system. From the unified financial system to the specialization pattern of the division of bank, to the commercial operation and entering the stock market, commercial bank corporate governance from scratch, from simple imitation to the self-innovation, at present a Chinese commercial bank corporate governance framework has been preliminarily build up.In our country, the whole process of the commercial banking system from establishment to the development is under the leadership of the government. Moreover,the state-owned capital occupies an important position in the banking system. Under the background of this system, the ownership structure represented by the major shareholders of state-owned capital has an important influence on the corporate governance of commercial banks. The strong relationship of commercial banks and political activities is a more common phenomenon, and in our country, bank executives in the political activities of active behavior is apparent, but is lack of a relatively objective and quantifiable index carries on the analysis and research. And this kind of research results from the political embedding is relatively few.In the management pattern of the commercial bank,a very important element is the executive officer of the commercial bank. In the related research of the commercial bank executives, the main research area is focused on the personal characteristics of bank executives. These factors include the external characteristics of the executives,such as age, education, work experience, political identity. These external features have been widely studied in corporate governance of commercial bank, and many research conclusions have been drawn. However, the research ideas of the personal characteristics of these executives have inherent defects, the executive is simply equivalent to the individual characteristics of the collection, ignoring its own inherent initiative. As Karl Marx said, "the essence of man is a collection of all kinds of social relations". Only when it is placed in a specific context, it can be more in-depth analysis of the characteristics of its behavior, as well as for the development of commercial banks in the strategic development, management, risk control and other areas of the impact. In this respect, Karl Polanyi’s "embeddedness" thought provides a new way of thinking. This thesis is under the inspiration of the idea of "embeddedness", for the commercial bank executives analysis, reduction to the embedded environment. Starting from the external political embedding and internal embeddedness has two aspects toanalysis and research.The main innovation of this thesis is reflected in three aspects. Firstly, a new measurement of the external political embedding of bank executives is presented.Difference to focus on executives of my political status of research methods, the creative use of commercial bank executives in the print media mainly political published signed the number as a measure of the foundation, and combined with the authority and influence of different types of media, and published the difficulty, design the different weights, this is based on the compiled the corresponding external embeddedness score. Among them, the print media political mainly choosed on the basis of its great influence, which are generally recognized publications, including "Qiushi Journal", "People’s Daily" and its overseas edition, "Guangming Daily", "Economic Daily". The selection of the above publications, mainly based on its unique status and important value in China’s social and economic life, their audience groups and content has a distinctive political orientation. And this initiative of the article from bank executives reflects the initiative to strengthen the level of external political.Secondly, this thesis makes a comprehensive analysis of bank executives with the combination of internal and external two perspectives. In the analysis of bank executives in the external political nature of the embedded, at the same time, in the bank’s internal embedded in the analysis process, and thus constitute the internal and external two different research angles.Thirdly, in this thesis, the bank executives for the study of the chairman and governor were analyzed. Based on the differences between the roles and responsibilities of the two parties, the role of the two parties in corporate governance is further explained.Through the data analysis of 16 A shares listed banks from 2006 to 2014, the main conclusions of this thesis include the following aspects. Firstly, the external political embeddedness executives of listed banks have a positive effect to prevent the risk of commercial banks. The external political embeddedness of the chairman of the board,whether in the static condition or under the dynamic condition, shows the significant influence, while the external political embedding of the president is only significant under the dynamic condition. Secondly, the external political embedding of executives of listed banks has a positive impact on narrowing the income gap betweent bankexecutives and ordinary employees. This effect is mainly reflected by the chairman of the external political. Thirdly, the external political embeddedness of executives from the listed banks has a certain role in promoting the growth of the bank, this situation in the governor’s external political embedded aspects reflects more obvious. Fourthly, the longth of CEO’s working time in the same bank have positive impacts for narrowing the pay gap and boosting the growth of listed banks.