Research On Banks' Performance Related With Governance Mechanisms Based On The Grey Factor Analysis

Since the 1980s, Country toke the reform of"Activate Incremental and Restructuring the Stock"and conducted a joint-stock reform of banks. After more than twenty joint-stock reform, Source of capital of commercial banks in China is turn the single state-owned capital to the state capital, private capital, foreign capital, the coexistence of diverse public capital structure. Diversified ownership structure not only makes the property rights of commercial banks be clear but also makes Interest-driven subject more directly. Therefore, the diversified ownership structure makes the banking business model and the business philosophy produce a fundamental change, at the same time, it also enables a more effective incentive and restraint mechanism be formed in the banks. With the joint-stock reform of commercial banks deep, its internal governance and external supervision have formed a more perfect system, however, the nature of equity, board structure and other governance structures (especially the external governance mechanism factors) affect each bank operating results or decide bank performance? How to measure bank performance more objectively?Fully considered the profitability of banks and the special nature of security; In order to more effectively eliminate the impact of human factors on the performance evaluation and make the final performance indicators to be neutral, objective, the author creatively use gray factor analysis to measure the overall performance of banks. Moreover, given past studies often focus on the single factors or the internal governance mechanisms, to make this paper more deep and integrity, the author will combine internal and external governance mechanisms (in particular, external governance factors) , and use multiple regression models to study the full range of corporate governance on the performance of listed banks. In this paper, listed in Shanghai and Shenzhen Bank data of 2007-2009 as the study sample, first, use the gray factor analysis to analyze the integration of financial and non-financial indicators of banks to get the factor scores of the final integrated as an integrated bank business performance indicators; Then use multiple regression model to build the correlation between bank performance and equity nature and the governance mechanisms, this is done in depth study on the basis of it.The empirical results show, in operating performance aspects, the composite score is almost the same as people's impression of the performance; in terms of relevance between Governance and performance, external supervision, deposit constraints, competition have significant negative impact on the performance, and the state-owned holding and the introduction of foreign investors has a significant positive effect on the aspect of upgrading of performance. As a result, the author thinks that we should appropriate play down too much impact on the banking regulatory aspects, and the banking regulators should integrate resources and transit their ideas to grasp the situation of the banks form macro, introduce the laws and regulations or normative documents as little as possible, use indicators system to replace the man monitoring to form a long-term mechanism for self-restraint banks to make their internal governance mechanisms play a greater role; optimize the internal management structure, appropriate to the introduction of foreign investors can update the business philosophy of China's banking industry, enhance their professional skills and operational level, strengthen internal risk control systems construction, increase the level of financial innovation and expand sources of income; adhere to the two jobs separated, control the scale of the Board, introduce the professionals in related fields or Independent Directors who have resources to enhance the bank's internal risk control level and performance; establish market of professional managers to form an external incentive and restraint mechanisms on the big bank managers, and constantly improve the manager of management capacity and professional levels.