| China’s commercial banks play a vital role in the entire economic system, governance and operational efficiency of commercial banks relate to the stable operation of the entire economic system. During20years of China’s banking sector reform, we have experienced the Asian financial crisis in1997, joined the WTO in2001, and reformed the shareholding system, as well as experienced the global financial crisis in2009. There are four steps of China’s Banking Reform. Firstly, we wrote off and pelt a large number of non-performing loans to financial reorganization through the government capital injection. Secondly, We Joined the WTO, and gradually opened financial sector to make domestic Banks in equivalence competitive situation. Thirdly, we reformed shareholding system and fundamentally changed the traditional property rights and the operating mechanism of banks. Finally, we raised capital through the public offering of stock, thereby strengthening the banking supervision. All these implementation are in order to improve the overall competitiveness of China’s commercial banks and we have indeed made great progress and achievements. But the biggest obstacle is how to realize diversified ownership, establish the modern corporate governance structure and raise the level of risk management and the product innovation.This paper is based on the theories about economics, banking and corporate finance. By using econometrical method and the related software, with qualitative analysis and quantitative analysis, considering the accessibility of the data, the paper aims to do some research on the impact of introducing international strategic investor on the corporate governance and the operation efficiency for those listed commercial banks.This paper consists of the following chapters:The first chapter is the preamble. It is part of the introduction to the significance and purpose of research, review of literatures from the domestic and the international, the basic framework and the innovation and shortcomings. The second chapter is about the background and theoretical analysis of introducing international strategic investor. Since the Asian financial crisis in1997, all sorts of risk problems have been exposed for the banks in our country. The government makes capital injection to strip a lot of bad assets, but the effect is limited. After2003, Banks in our country, especially those state-owned commercial banks began to introduce the joint stock system and financial restructuring, and introducing international strategic investors to establish the modern corporate governance. After the financial restructuring, from introducing strategic investors to initial public offering, the banking reform is deep going. So, this paper discusses some related theories on introducing the strategic investment, mainly including corporate governance theory and efficiency evaluation theory for banks. The basic problem of the corporate governance is how to make full use of the capital assets and undertake the responsibility for the providers of capital at the same time for the managers to improve the strategic decision-making ability for enterprise and create value for investors.The third chapter, the introduction of foreign strategic investors in the governance structure of listed commercial banks in China. Firstly, this chapter summarizes the specific situation of the foreign strategic investors how to participate in the governance structure of China’s listed commercial banks. Then, gathering the data of all listed banks on Bank governance indicators from2001to2011. Got the conclusions of dispersing state-owned shares on the equity holding a certain degree of foreign strategic investors, all the details is described in this paper. Then, make the statistical analysis of the relevant indicators of the strategic investors, showed that the average stake for foreign strategic investors ranking, Most of the strategic investors send directors to the shares of Chinese banks, but these directors generally do not serve as the administrative leadership and management of the banks. Therefore, we believe the foreign strategic investors will not affect the decision-making powers of the Board, and play a little role.The fourth chapter is about the impact of introducing international strategic investors on operation efficiency for the listed commercial banks. First, this paper selects financial indicator related to the operation efficiency of banks to reflect the bank’s capital adequacy ratio, NPL ratio, profit ability, operation ability and innovation ability, using the three year’s data before and after to reflect changes in operation efficiency. Then, taking into account the time of introducing international strategic investors, this paper selects the indicators relevant to establish the model to analyze the contributions of the international strategic investors to operation ability, with the data of listed commercial banks from2006to2008. The results show that despite the indicators of commercial banks, Including the capital adequacy ratio, NPL ratio, the average return on assets, the average return on capital, cost to income ratio, non-interest income were significantly enhanced after introducing international strategic investors, the empirical analysis shows some of the indicators have a negative effect, which is manifested as impediments to domestic banks’ profitability and innovation capability.the impact of international strategic investors on operation efficiency in China’s listed banks is not significant. The reason for that is that international strategic investors are not familiar with the domestic market and are in the run-in period with domestic banks in the short-term. Secondly, from the perspective of foreign banks, if only a strategic cooperation contracts, foreign banks lacks motivation to make professional investment, such as the power output of skills and experience and product development support, because the effect of this investment is difficult to ensure in the case of unanticipated. On the other hand, although the professional investment has been made, the advanced technology and management experience may not be able to show up in the short term.The fifth chapter is about the conclusion and outlook. This section summarizes the conclusions of the previous theoretical and empirical research and gives out suggestions from foreign capital purposes, the way of foreign capital, the bank itself and the macro environment.International strategic investors can be said as a "double-edged sword." How to use the sword is a key component of successful transformation of China’s commercial banks, improvement of the comprehensive competitiveness and reducing banking risks. Of course, there are many inadequacies in this paper. Due to the availability of the data, this paper only selects the listed banks as research subjects so the less sample coverage may reduce the scope of the conclusions. State-owned joint-stock banks were listed later and some of the data is missing before being listed. All of these may affect the model’s regression results. The choice of the model and the inaccuracy of the selected indicators also have a certain impact on the results. If it is possible to obtain more comprehensive data, research in this area can be expanded and can make the results more convincing. |
PDF Full Text Request