A Research On The Relationship Between Characteristics Of Board Of Directors And Bank Performance

As an important internal governance mechanism, the board has the extremely important status in the corporate governance. The existing relevant theory and empirical study have suggested that board of director’s governance in the commercial bank is closely related to the commercial bank performance and shareholder value. And the governance efficiency of the board of directors depends on the scale of the board of directors, meeting, the proportion of the independent directors and female directors, the structure of the leadership and so on.Foreign Banks are outsiders to the China market, they inevitably exist some oversea disadvantages. In order to overcome them, they take the human resources localization strategy, especially the localization of the board members. Because tehy are the strategic decision makers. For the enterprise’s survival and development, they play a vital role. They are dedicated to the combination of human capital and other capital, coordinate and maintain a variety of business activities, and innovate at the same time, and ultimately achieve their corporate objectives. So foreign Banks pay more and more attention to the localization of the board directors.But we do not know whether it has a positive impact on bank performance. According to the relevant literature,we found that most scholars only prove its positive impact on the bank performance theoretically.This paper adds the localization characteristic of the board of director combining the theory of human resources localization.This paper choose22foreign Banks in China, the panel data is from2009to2012It analyzes the characteristics of the board of directors of the foreign Banks in China and the relationship between bank performance.According to the results,the localization characteristic has a positive impact on bank performance, the board meeting, the proportion of female directors and the independent directors, and the leadership of the board of directors structure have positive impact on bank performance, the board size has a negative effect on bank performance.