Research On Corporate Governance About Share-holding Commercial Banks In China

As an important component of China's financial system, the competitiveness of the share-holding commercial banks has continuously enhanced in the past 20 years. However, in the development process of share-holding commercial banks, the state-owned banks problems have appeared in the share-holding commercial banks, such as non-performing loans has tended to deteriorate, the ratio of capital adequacy is low, the loss is serious shortage. In the final analysis, the causation of these problems rest with the corporate governance. In a sense, improving corporate governance has been to become an important indicator of the success of the reform of China's commercial banks and one of the key tasks of the last stage. Banking shares of the large-scale restructuring is underway, so we must give full attention to corporate governance issues of the share-holding commercial banks.Starting with a study of share-holding commercial banks, selecting data from 42 annual reports of 16 share-holding commercial banks, the paper bases on the corporate governance structure proposed by Organization of World Economic Cooperation and Development, using empirical analysis,Comparative analysis and mathematical analysis method, aims to provide an in-depth study of the shareholding structure,the internal control mechanisms and incentives mechanisms, tries to find the inherent links between bank's operating performance and corporate governance factors, points out the major problems that exist in corporate governance of share-holding commercial bank, proposes some constructive suggestions and measures to improve the corporate governance and the bank operating performance.Through empirical studies and comparative analysis , the author has summarized the features of corporate governance of the share-holding commercial bank in China: a higher proportion of the controlling shareholder equity, equity concentration; the make up of board mostly is major shareholders, state-owned large shareholders in particular; a small number of external directors and independent directors; the incentive of senior management staff is insufficient, lack of a long-term incentive mechanism; there is still a considerable distance between information disclosure situation and the requirements of the Basel Committee.Empirical research findings on corporate governance factors affect the operating performance of share-holding commercial banks show : the first major shareholder equity ratio has negative correlation with the bank's operating performance; there is a positive correlation between the board size,the supervisors board size and the performance ; the proportion of independent directors negatively correlated with the bank's operating performance; proportion of directors that from top 10 shareholders shows a negative correlation between performance; incentive of the senior management staff will play a positive role in raising bank's operating performance; the number of meetings of the board and the board of supervisors has no significant effect on the performance of banks.