Commercial Banks’ Corporate Governance And Risk Taking

As an important modern financial sector, since the share-holding system reform of Chinese commercial banks, the efficiency and risk control level of corporate governance of commercial bank has made great progress. But today international economic situation is more and more complex, the risks of banks are also more diverse, while the bank’s corporate governance structure is also put forward higher requirements, while commercial banks risk appetite and corporate governance structure has a very close relationship, through the establishment of sound corporate governance structure, as an important means against the risk of commercial banks.This article is divided into five chapters:Chapter Ⅰ, introduction, introduces the research background and sighificance of the topic, notes the innovation of this paper and research methods, and conducts a detailed review of related research.Chapter Ⅱ, the theoretical basis of corporate governance and risk taking about commercial banks, firstly, a brief introduction about the understanding of corporate governance, from the modern property rights theory, principal-agent theory, stakeholder theory these three aspects elaborated corporate governance, analyzed the difference from general corporate governance characteristics from the particularity of commercial banks, finally analyzed the bank’s risk meaning and bank risk-taking measurement.Chapter Ⅲ, combined with related data about the listed banks ownership structure, board governance and executive compensation,analyzed the current governance of the commercial banks and the current risk taking of the commercial banks, then elaborated the internal corporate governance structure’s influence on the risk taking from the listed banks ownership structure, board governance and executive compensation the three aspects.Chapter Ⅳ, in case of 14 listed banks, this paper collects relevant data, and selects the relevant indicators, descriptive statistics for each variable, using panel data to multiple regression analysis, to seek ownership structure, foreign strategic investment, the board and the supervisory, executive compensation and other factors have a significant impact on the risk taking, the results of empirical research has the following characteristics:the proportion of the largest shareholder, executive compensation was significantly positively correlated with the NPL ratio, the proportion of independent directors was significant negative correlated with the NPL ratio, the overseas strategic investment holdings, the board size, the supervisory scale, the proportion of staff supervisor these statistical results are not significant.Chapter V, based on the previous theoretical and empirical analysis, this article finds these conclusions:ownership structure, board, executive payment are closely related with the risk taking, related,proposed commercial bank corporate governance reform proposals and measures, including optimization of ownership structure, and actively introduce strategic investors to achieve diversification of ownership structure; improve the efficiency of board governance, improve the independent director system; establish executive compensation wth risk-linked system and adjust the salary structure, etc.