Research On The Incentive Mechanism Of State-owned Commercial Banks Based On Principal-Agent Framework

All along, the reform of the commercial banks has become the key issue of the economic structure reform. Forming a sound corporate governance, and promoting the development as well as the firm management to strengthen its competitive power are the core of the reform of the commercial state banks.As the basic corporate governance of commercial banks,the incentive mechanism is directly related to the perfection of the corporate governance structure and improvement of the performance of banks. Therefore, the perfection of the incentive mechanism is become the key of the stated-Banks revolution. the research on the incentive mechanism of the workers in banks, especially to the managers of the banks has a great value in theoretical analysis and practical operation.This paper analysis the incentive mechanism of china's states-commercial banks through the multi-task principal-agent model from the principal-agent theory, This paper discuss the commerce banks manager's incentive contracts in two aspects: the task are inter-independent and inter-dependent., And using April, 2008 published by China's listed banks, this paper analysis the relationship of incentive of commercial banks and firm value; the result shows the performances of banks that contain more policy-oriented loans is worse than that of the banks that contain less policy-oriented loans, and the incentive mechanism is positive to the performance of the commerce banks. Finally, this paper find out three characteristics of the incentive mechanism of foreign commercial banks: the income of the manager is large; the annual salary income is in small proportion; the total income grow quickly after 1990s, but the annual salary income's growth is not significant; the annual income of managers at different levels have a great of different.The major work and innovation in the paper: find out the questions of the incentive mechanism in Chinese banks through analysis multi-variable factor in incentive mechanism of China's state-owned commercial. then find out some recommendations designed for China's state-owned commercial bank:Increase the intensity of incentive;outstanding incentive standards; outstanding the proportion of the long-term incentive to incentive mechanism; perfecting the evaluation indicators of incentive.