Research On The Influence Of Corporate Governance On The Vulnerability Of Bank

The banking in economy plays a vital role in a series of credit allocation and financial intermediaries. Consequently, the stability of banking is an essential condition for healthy and steady development of finance and economy. Especially, the developing country as China which has unsound financial and economical institution, the banking whether has a healthy and steady management is a key for the stable and orderly development of financial and economy. The research about the vulnerability of commercial bank in China traced to the attention of The Asian Financial Crisis, and the vulnerability of commercial bank became the spot again because of the 2008 America financial crisis. The China’s commercial bank that were listed one after another and blended in international market gradually, which only has modern corporate governance can cope with the inconstant financial market. The deeper research of vulnerability of commercial bank theory and the maturity of corporation governance can supply theory that seeks for analysis of vulnerability from the bank corporate governance view.The thesis explore the generated conditions of the vulnerability of commercial bank which bases on theory, and discover the cause of vulnerability of commercial bank which is according to the macroscopical and microcosmic factors that was arose by internal and external issues. Thus, the thesis, which bases on this theory and refers to oversea and domestic scholars study, can estimate the level of vulnerability of commercial bank from the indicator of macroscopical and microcosmic view. Which demonstrates the decreasing tendency of our country vulnerability of commercial bank year by year, and the vulnerability of state-owned commercial bank is higher than joint-stock commercial banks. Therefore, the paper use the theory to analyze the effect of vulnerability of commercial bank and research the multiple results dialectically which become from the factors of corporate governance, the structure of equity and The structure of the organization. Then the thesis will choose data of 14 China listed commercial bank to construct the panel model, and testify the theory of speculation from the empirical view which can find the ownership concentration of the structure of equity, the proportion of state-owned shares, the proportion of non-tradable shares and the proportion of independent directors of the structure of the organization. The proportion of external supervisors and executive compensation incentive both effected on the vulnerability of commercial bank obviously. For the difference between state-owned commercial bank and joint-stock commercial bank on the impact of level degree on vulnerability of commercial bank of the corporate governance, the thesis also constructs the model of the structure of equity and organization, and explain the reason which cause the differences from the expect of the thesis. Referring to the front theory and empirical analysis, the paper gives suggestions which are from the view of optimizing the structure of equity and organization of commercial bank, and anticipate to reduce the level of vulnerability of commercial bank which depends on improvement of structure in corporation governance.