Study On Corporate Governance And Innovation Performance Of Commercial Banks

With the financial marketization degree deepening and the global economic integration process growing, commercial banks of China are facing unprecedented pressure and challenges. Only through the financial innovation can help commercial banks of China to establish competitive advantage, so as to achieve sustainable profit and growth. But compared with foreign banks which joined the financial market of China, the innovation performance of our country’s commercial banks is not so ideal. Some scholars pointed out that "In order to improve the innovation performance of banks, the key is to establish an effective innovation mechanism, and the establishment of the establishment of a reasonable corporate governance mechanisms". Some other scholars emphasized the importance of a reasonable corporate governance mechanism against the risk of bank’s innovation.The corporate governance structure and decision mechanism of China’s commercial banks has just set up, there are many aspects need to improve. And the corporate governance is of great significance to bank innovation. For the two reasons above, this study try to find the relationship between corporate governance and commercial banks’ innovation performance. Based on the corporate governance theory and relevant literature, first, we theoretically constructs the basic research model and research hypothesis of the corporate governance and commercial banks’innovation performance. Then we select the14listed banks during the2007to the2011as samples in the empirical analysis. By empirical analysis we got some conclusions as follows:decentralize the equity concentration moderately, diversify the stockholders, establish and perfect the independent director system, increase board members with higher education levels and representativeness, strengthen the equity incentive mechanism to the top managers, and try control the bank’s risk level in a relatively low range, all these measures can help commercial banks of China to establish a corporate governance mechanism which is more conducive to improving the innovation performance.