Commercial Banks To Participate In The Study Of Corporate Governance

"Corporate Governance" is introduced from the English language. What is the "corporate governance"? Scholars have put different opinions forward from different angles. The author thinks that corporate governance is the summation of inside governance structure and outside governance mechanism in order to harmonize benefit of stakeholders and carry out the balance among stakeholders. The essence of corporate governance is a contract system of distribution of ownership and domination right. The core of corporate governance is about the subject of the governance, object of governance and methods of governance. In another word, who has the right to govern the corporate, what to be governed and how to govern the corporate. Under the notion of "shareholders' sectionalize", the shareholder was considered as the only corporate owner and member. Existence and development of the corporate all take shareholders' benefit as the ultimate objective, the only goal of which is to make money for the shareholder. So, the design on corporate governance also revolves around how to make shareholders' benefit attain maximization. But along with the scale of the corporate expanding, multitudinous shareholders in the capital market and the stock being dispersed day by day, as a "rational indifferent person", shareholders in the stock market display a dreary surveillance to the operator of the corporate by "foot voting". Thereupon, corporate governance treads into the times of board sectionalize". Because the asymmetric information brings the reversion and the moral risk, the board's ability to supervise the operator of the corporate drops, and the monitoring overall tends to attenuate. The operator has harmed stakeholders' benefit, such as the staff, the creditor and so on, the phenomenon of which is occurring ceaselessly. Later, corporate governance has developed to the stakeholders' co-governance stage. Company is considered as a kind of nexus to sign with stakeholders, among which bank is an important contractor, who has the right to participate in corporate governance and to monitor the operator in order to maintain its vital interests. Therefore, bank participating in corporate governance is inevitable product and result which people understand corporate governance continuously and the notion of corporate governance is developed ceaselessly.On the contrary, commercial bank, as an economic body in market in the economic...