Study On Problems Related Of Commercial Bank Corporate Governance

While finance is the core of the modern economy, commercial banks are the central part of China's financial system. The reform in China'banking sector is an important part of China's economic reform, the reform of commercial bank will give an overall impact on national economic and financial development in the future, and play a decisive role in China's economy and finance. In addition, in recent years with the international financial upheavals and differentiation among the world's financial institutions, national financial institutions all the world carried out re-integration, new patterns appears in the international financial competition. All these factors at home and abroad of China's financial pose a severe challenge, which is calling China to raise its financial competitiveness, enhance the financial security, and increase banking firm governance. Based on the above factors, this paper analyzes the administration and efficiency theoretically and empirically of the listed banks in China.Equity preference theory is a very important theory in economics. It emphasizes the people concerned with not only their own self-interest preferences, but also the fairness preferences, shows not only fair and objective reality in a different background, but also a fair display of the form diversity itself. This theory is also common in the corporate governance of commercial banks. The paper conducted in-depth study of the theory. This method provides a new effective method for solving high surveillance cost owing to asymmetry information in economics.Bank governance issues have become a hot research in global economic management. Since China is in the critical stage of reconstruction of enterprise system and development of capital markets,it is urgent to speed up to build the cost-effective governance model for the bank. From the perspective of behavior, this paper discusses the behavioral model and intrinsic motivation of behaviors of the owners and operators of China's listed banks through building the model so as to reveal behavioral basis of the owners and operators, which provides the theoretical basis for better understanding their behaviors and establishing scientific and effective structure of bank governance.We examine empirically the relationship among bank CEO compensation, board of directors governance and bank performance.The evidence suggests that long-tenure CEO, CEO who is the chairman of the board, higher proportion of inside directors in board and larger board can lead to monitor impediments of China's listed banks. Because of the high compensation correspond to a significant increase of bank performance CEO of high compensation is not surprising. At last, we give an advice that granting CEO with incentive compensations which can overcome monitoring impediments and improve the bank governance.In this paper is based on full consideration the special nature of governance in the banking sector, and dose empirical analysis on independent directors in bank operating efficiency by a series of model. Research confirmed that the bank has more power equity, and the independent directors weaken oversight functions. Because of their professional background and extensive social relations, bank of independent directors can improve the efficiency of decision-making by the board of directors to upgrade the bank's performance. The study also found that the role of independent directors is lagging behind. The current independent directors can significantly enhance the performance of the next period of bank.We use DEA advantage efficiency model and disadvantage efficiency model to make an assessment of Chinese banks'DEA comprehensive efficiency. The result shows that the big four state-ownership banks are obviously less efficient than others by comparing the share reform. The study also shows that the four major state-owned commercial banks do not have oblivious scale economy. Regression analysis showed that the consolidated technical efficiency (EFF) and corporate governance of China's commercial banks have significant positive correlation, that is, the higher the level of corporate governance of commercial banks is, the more the efficiency of its integrated technology can be.