The Research On The Corporate Governance Of Rural Credit Cooperatives

As the commercial banks quite the rural market, rural credit cooperatives(RCCs) become the main force of rural finance and agriculture development. As RCC is defined as a finance enterprise, the problems such as how to enhance its operation and management, increase its performance and improve its serving ability et al. are the important issues to its development. As socialist market economy matures, the long pending problems of RCCs become more and more exposed, which have a bad impact on its operation and development of rural finance. So government decided to start the reform of RCCs in2000, which explored the property right and corporate governance. In the new round reform of2003, it allowed RCCs choose different models of ownership that fit in their situations, and design right framework of corporate governance in order to improve their internal management. As the reform develops, more and more experts pay attention to the process, problems and future of the reform, and the reform of RCCs have become one of the most important issues in the reform and development of finance.After experiencing the reform, the ownership of RCCs has been improved, the framework of corporate governance has been established, the performance has also become better. However, no matter the theory analysis or the empirical research on corporate governance of RCCs are all at the beginning step. There are still many difficuties in the operation of RCCs, and the way to resolve these problems is to establish the reasonable structure of corporate governance, so the issue that what kind of structure is suitable to RCCs should attract our attention. This article will study the structure of corporate governance of RCCs by the theory and empirical analysis. The research will first analyse the theory about corporate governance of banks and RCCs. Then we will take the RCCs of Jiangsu province as example to show the present situations of corporate governance, from which we find the primary important factors to the performance efficiency of RCCs. After that we will use the regression analysis to find the final important factors of corporate governance. Then we will consider the efficiency of RCCs as measurement to the reasonableness of their corporate governance, and study that what the above-mentioned factors will be when the efficiency is maximum, which are just the suitable and reasonable structure of corporate governance. Finally we will give several political advices about improving the corporate governance of RCCs according to our conclusions. This research will provide some reference to the reform and development of RCCs in the future.