Research On The Relationship Of Listed Commercial Bank Corporate Governance And Performance In Our Country

According to the agreement of WTO, the five-year's protection period of Chinese financial industry ended on December 11, 2006. Since then, Chinese financial industry has been completely opened and the RMB retail business has been fully opened to foreign banks. Meanwhile, Chinese interest formation mechanism is gradually becoming market-oriented. Under this condition, banks, as the core of financial industry and Chinese economy, are facing more and more furious and fierce competition. A favorable corporate governance structure is the foundation for a bank to gain sustained competitiveness. Thus, this paper analyzes the relationship between the corporate governance structure and their performance of China's listed commercial banks by normative and empirical study. To find out the differences between theory and application has an outstanding practical significance on improving the corporate governance structure of China's listed commercial banks.Firstly, based on the introduction of the theories of corporate governance and commercial banks'corporate governance, this paper analyzes the current situation of corporate governance structure of China's listed commercial banks.Secondly, it analyzes the grey relationship of China's listed commercial banks'corporate governance structure and their performance.Then, on the basis of theoretical and researching achievements by western and domestic scholars, it proposes six theoretical hypotheses on the aspects of ownership structure, the director board and supervisors board, top managers encouragement, and verifies these hypotheses by establish multiple linear regression model.The empirical study indicates that: risk-compensated return on assets is vice-optimum bank performance index; and it is a negative relation between performance and ownership concentration while it is a positive relation between performance and ownership restriction, scale of director board and its independence ,scale of supervisors board, the encouragement of top management. In addition, the relationship between the frequency of board of directors'conference and supervisor's conference, leadership structure is not clear. Finally, the paper raises some countermeasures to improve the corporate governance structure.