Research On The Corporate Governance For Rural Small-and-medium Sized Financial Institutions Of Shandong

In recent years, with the development of rural finance reform, the corporate governance of rural small- and-medium sized financial institutions (RSMFI) has attracted much attention. As the most important part of RSMFI reform, corporate governance reform directly affects the sound, sustained and rapid development of RSMFI. Since 2004, under the management and guidance of the Shandong Rural Credit Cooperative Union, RSMFI has taken many measures to deepen corporate governance reform and its business performance has made a spurt. Because the current shareholding and banking system reform is still at the initial stage, the effect of corporate governance mechanism of RSMFI needs further investigation. What's more, some deep-seated problems also need to be solved. Therefore, to find a reforming model of corporate governance with Shandong characteristics has very important theoretical and practical significance.Good corporate governance mechanism is highly praised all over the world. Based on the theory of corporate governance, this paper establishes an empirical model about the relationship between corporate governance and the operating performance of Shandong RSMFI. It conducts factor analysis and multiple linear regression trying to find how corporate governance variables affect RSMFI performance. The data was collected by means of questionnaire survey, on-the-spot investigation, and other methods.Lastly, this paper provides policy suggestions to optimize the corporate governance of Shandong RSMFI based on domestic and foreign corporation governance guidelines and experiences.