Research On Commercial Banks' Financial Performance Based On The Stakeholders Perspective

As the financial sector supporting social and economic development, the role of the commercial banks has become more and more important. As a profitable market-oriented enterprise, they pay more attention to the profitability of their own in the fierce competition. But the current studies show that commercial banks in worldwide are facing the loss of profit efficiency which Leibenstein (1966,1980) presented X-efficiency. What are the causes of the long-term existence of the X efficiency have also been widespread concerned about by the academic and business circles.Since the SRI (Stanford Research Institute, 1963) and Rhenman (1964) proposed the concept of the stakeholder, the stakeholder theory developed rapidly and has been widely recognized by academics and businessmen. It opened a new perspective for the research of the "mystery black box" and improving the financial performance of the commercial banks. However, the existence of the stakeholders′diverse needs bringing the diverse business goals and the difficulty to quantify the problem has plagued the application of this theory in commercial banks′practice. This requires answering the questions such as whether and how stakeholders affect the commercial banks′financial performance, and how to maximize the commercial banks′financial performance in stakeholder perspective.To this end, this paper conducted in-depth research on the commercial banks′financial performance based on the stakeholder perspective from the following aspects:Firstly, a theoretical analysis revealed the inherent relationship between financial performance and stakeholder relationship integrated stakeholder theory, resource-based theory, resource dependence theory, modern contract theory and expectancy theory. On this basis, proposed the propositions of this study.Then, selected indicators to measure commercial banks′financial performance and stakeholder relationships, and took the sample of Joint-stock commercial banks, through panel regression analysis and Granger causality test to investigate the correlation and the causality between them.Empirical studies showed a significant correlation between them, stakeholder relationships were the key variables to the commercial banks′financial performance, and there were long and short two-way Granger Causation between them.Finally, discussed the conditions under which commercial banks can maximize their financial performance using marginal analysis. Combined with the actual operation and the management of the commercial banks to give corresponding countermeasures.Research showed that commercial banks could realize the maximum financial performance under the constraint of the established funds when their last one dollar spent in the relationship operating among the various stakeholders could bring the equal financial performance improvement. The operating states of the various stakeholder relationships in the Chinese Commercial Banks were irrational, which led to the loss of their profitability. They should continuously improve their financial performance to the maximum through active change management concepts, balancing the interests of the stakeholders and so on.To research commercial banks′financial performance on stakeholders' perspective is very important to explore the X efficiency, open the "black box mystery" and improve the financial performance to maximum. Therefore, this research has a strong and practical guidance. It will not only provide the scientific basis for management of the commercial banks, but also has an important role in guiding the research on corporate financial performance on stakeholder perspective. Also, this paper intends to provide a scientific reference for future similar studies.