Research On The Relationship Between Governance Structure And Performance Of The Listed Banks Of China

The relationship between corporate governance structure and corporate performance has been the10years’ hot issue in financial economics, domestic and foreign economists and management theorists have given the considerable attention to it. Since Coase create the modern theory of the firm, economists have studied about the modern enterprise operation and management mechanism from their different perspectives. Many domestic scholars have also done some empirical studies on it.Banking plays an important role in a country’s economic development, and the listed banks have been the important force in China’s banking sector. With the reform of financial system, especially the reform of bank sectors, banks’ corporate governance issues are also of concern. Therefore, the study of mechanisms of corporate governance of listed banks, characteristics and effects has particularly practical significance. Most of the exiting researches just focus on the corporate governance impact, that is. positively correlated or negatively correlated to the performance, but not indicate the quality of corporate governance indicators that reflect on the change of performance of the company, thus, they can’t explain the differences between the performances of commercial banks. This essay is to start point to study the deep relationship between the corporate governance and bank performance.In this paper.1comb, review and assessment the existing domestic and foreign literatures on the governance structure and governance performance of commercial banks, do the theoretical analysis of governance structure and the management of commercial banks. put forward eight hypothesis propositions, and then describe the data. variables and specific measurement methods used in this article. In the above premise. I estimate the decision equation of the performance of commercial banks, reveal the differences between the performance of state-owned banks and non-state banks, decompose and interpret it.I find that the governance of commercial banks overall significantly affects on the bank performance. Especially, the relationship between the ownership concentration and the performance is the most stable, negative correlation. while the size of the board has not significantly impact on the bank performance and the other variables’ impacts are also instability. The differences between slate-owned banks and non-state banks are mainly from the coefficient differences. that is. the different governance mechanisms. Ownership concentration has the largest contribution to the differences, which indicates that the performance differences are mainly due to the ownership concentration.