Empirical Study On The Board Feature Of Chinese Commercial Banks And Performance Of Corporate Governance

In recent years, with the development of global economy, the internationalfinancial enterprises are infiltrated into chinses market slowly, Chinese commercialbanks realized that the board of directors perfect governance mechanism can not onlyimprove the company’s business performance in the fierce competition but also gaintrust and support of shareholders. Finance is the core of modern economy, and bankingis one of the important business of financial industry. In order to improve Chinesefinancial industry market competition ability, the Chinese government began to includeimproving the structure of the board, a series of reform measures implemented listedfrom twentieth Century ninety years, gradually improve the bank’s board of directorsgovernance structure. Researching the relationship between board governance andoperating performance of our country commercial bank, this can not only understandthe current situation of our country commercial bank’s board of directors morecomprehensive and shortcomings, but also put forward the improvement proposal forits problems. To improve the performance of our commercial Banks, improving thegovernance mechanism of commercial Banks in China have good guiding significance.Firstly, the study about the relationship between board characteristics andperformance were summarized, the system of performance evaluation criteria of theCommercial Bank has carried on the analysis and evaluation. On this basis andaccording to the particularity of commercial banks, discarded the previous bankperformance in terms of a single variable method, but from the profitability, safety andliquidity to select the measure of bank performance indicators, and study itsrelationship with the characteristics of the board of directors, and refine the conclusion.Secondly, this article is based on16commercial banks of China listed in2009-2012(except for Chongqing Rural Commercial Bank) for the study. Make theresearch of the bank board size, the proportion of independent directors, the number ofboard meetings, the chairman whether change, the top three members of theremuneration of the Board, the education background of the Board members and otherfeatures of the relationship between the board and the bank operating performance. Finally, according to the results of empirical research，we are offer a proposal. Inorder to improve the operating performance of China’s commercial banks, and improvethe governance mechanism of the board of directors, we should choose a suitable,effective board size based on the the factor structure of commercial banks and the assetscale; and further emphasize function and role of the independent directors in strategicdecision; and then improve the academic degree of board’s members, so that the boardof directors will perform better decision-making and supervision function;enhance theefficiency and quality of the meetings of the board of directors;further improve theincentive system of the bank director, so as to increase the incentive efficiency.