A Study On The Relationship Between Board Governance And Performance Of China's Listed Bank

Board of directors' governance is the core of corporate governance. Board of directors is the one has the powered right and supervision rights with the authority of shareholders. The condition of governance of board of directors, such as size, independence and what it does have important affects on the agency problem. Perfect structure and right means to work can control the managers who purchase his own profit instead of the maximum profit if the firm to low the agency cost and improve efficiency. The special characters consider board governance so important for banks. Perfect mechanism and good way to manage is important.In full consideration of this special treatment on the basis of the banking sector, positive listing of the bank's board of directors empirical inspected the relationship between governance and performance. Most previous studies of the governance ignored the many peculiarities of the banking sector in this area. Therefore, banks should not simply copy the general conclusion of corporate governance. Research shows that, on average, board size is larger in commercial banks than that in non financial firms, and an inverted U shaped relation between board size and bank performance; the average ratio of outside directors is higher, but its effect on bank performance is insignificant; board leadership structures where the chairman of board and CEO is separated, is positively related to bank performance , the association between the annual number of board meetings and bank performance is insignificant; a non-linear relation has not been found between the fractions of stock owned by board members and bank performance, and the effect of CEO tenures on bank performance is insignificant.We use the board governance cases of Citi bank from the United States , point out the problems on corporate governance of commercial banks , and put forward the useful suggestions for improving board of commercial banks in China..