Ownership Structure, Corporate Governance And Performance Of Listed Banks In China

Finance is the core of modern economy. The banking industry has an important position in the entire financial system. The ownership structure depends on the ownership structure of bank, which decides the effectiveness of bank's governance, thereby affecting bank performance. The banking industry of China has undergone great changes since the start of the reform of state-owned commercial banks. Recent years, changing ownership structure is a core work of reform for commercial banks. Commercial banks continue to optimize their ownership structure, improve corporate governance, strengthen internal control mechanisms and risk management system and continue to improve service levels and efficiency. In the financial crisis environment, the impact to Chinese banking industry is relatively small; it has laid a solid foundation for the healthy and stable operation of the entire national economy.This paper aims to study the ownership structure and corporate governance of Chinese commercial banks, and their effect on bank performance. We use the ownership concentration, ownership nature and other indicators to measure the bank's ownership structure; we use the size of the board, the size of the board of supervisors, the proportion of independent directors and the executives'pay to measure aspects of corporate governance.The sample data come from 12 Chinese banks from 2006 to 2009. Then, we make the empirical analysis on the ownership structure of listed banks, corporate governance and bank performance. The results show that Chinese commercial bank with state-owned equity has relatively concentrated ownership structure; the state-owned shares have a negative impact on bank performance; there is no obvious correlation between the Legal person shares and the bank performance. The outstanding shares have a significant positive impact on the bank's performance. The proportion of independent directors and executive compensation levels has a positive impact on bank performance.