A Research On How Strategic Investor Affects The Performance Of Bank By Participating In Corporate Governance Of China Listed Bank

In 1996,China Everbright Bank introduced Asia Develop Bank and became the first bank absorbing international capital. Since then, there are many city commercial banks, joint-stock banks and state commercial banks introducing strategic investors in the way of share equity. Up to October in 2006, there are 9 listed commercial banks in China, that is, Shenzhen Development Bank, Shanghai Pudong Development Bank, China Merchants Bank, China Minsheng Bank, Huaxia Bank, China Construction Bank, Bank of Communication, Bank of China and Industrial and Commercial Bank of China. Except China Merchants Bank, other banks have introduced strategic investors. We can see that it has been a trend for Chinese commercial banks to improve corporate governance and advance performance by introducing strategic investors, especially foreign strategic investors. However, Chinese scholars in this field just do little research on this issue that how strategic investors affect performance of banks by affecting corporate governance of banks. Therefore, this paper discusses and lucubrates on this issue. The paper takes Chinese listed banks as research objectives and manages to explore whether the introduction of strategic investors promotes the performance of banks. Finally, we provide theory evidence on the policy of China's listed banks introducing strategic investors.Using the corporate governance theory, this paper analyzes how strategic investors influence the corporate governance and performance of the listed banks from the perspective of Chinese listed banks. On the basis of scientifically defining the strategic investor and corporate governance of commercial bank, this paper, from the two angles, that is, strategic investors and listed banks, analyzes the need and feasibility of Chinese listed banks introducing strategic investors and especially analyzes the contingency factors of strategic investors participating in the corporate governance of the listed banks.On the use of the idea and method of the system theory, this paper analyzes the mechanism that the strategic investors participate in the corporate governance of the listed banks and establishes the corporate governance evaluation index system of listed banks. On the basis of this system, we select the corporate governance evaluation index of listed banks based on strategic investors. This paper takes China's eight listed banks'annual reports as the data source and does the empirical research on the relationship between corporate governance evaluation index of listed banks based on strategic investors and the performance of the listed banks. Thereby, the paper explores the influence on the performance of the banks imposed by the introduction of the strategic investors.Finally, according to the theoretical and empirical analysis on China's listed bank introducing strategic investors, this paper puts forward relevant policy recommendations from macro and micro perspectives. The paper provides the necessary theoretical support for the behavior that Chinese listed banks introducing strategic investors.