The Influence Of Foreign Strategic Investors To Governance And Performance Of The Bank

From October 1996, the Asian Development Bank took a stake in China Everbright Bank, China’s commercial banks have introduced foreign strategic investors for 19 years.In 2003, the China banking regulatory commission hoped to promote the reform of the Chinese banking industry and construct the corporate governance structure.At the same time, According to the promise of China’s accession to the WTO, in December 2006, the Chinese banking market fully opened to foreign investment, phasing out to foreign banks in China business region, business and customer.Therefore, the reform of the commercial banks in China is imminent.In recent years, the study of foreign strategic investors taking a stake in China’s commercial banks and this action influencing the banks’ management and performance, is a hotspot of the scholars at home and abroad.This paper discusses the theoretical foundation of the commercial banks in China introducing foreign strategic investors——the relevant theories of corporate governance, particularity of corporate governance of commercial bank, strategic investors and bank governance performance. Selecting 24 commercial banks’data of 2003-2013,the capital adequacy ratio, core capital adequacy ratio, the proportion of the retail business, the proportion of intermediate business income, cost income ratio, average revenue per capita, non-performing loan ratio, return on assets, the average return on equity, these indicators as dependent variable, to measure the governance performance of banks. The number of foreign strategic investors, foreign strategic investors holding sum, accumulated holding time overseas strategic investors, the first big overseas strategic investors relative shareholding as independent variables. Logarithm of total assets, loans to total assets ratio,these two indicators as control variable. Build the model, makes a research on the overseas strategic investors influence the performance of commercial bank governance.The empirical results show that the influence between each index is not completely positive correlation, some even a negative correlation.Further using the principal component method, building comprehensive performance evaluation index, explore the overall impact of each variable on the governance performance, discovered that significant positive correlation.But it must be noted that foreign strategic investors have a positive impact for the development of China’s banking sector,at the same time, the problems that caused by foreign strategic investors.At the end of this article, we have put forward the countermeasures and suggestions.