Chinese Commercial Banks Management Mechanisms And Risk-taking Behavior Research

With the rapidly development of global finance, financial risks are also keep growing, the risk has become an important issue in the banking industry. Research company bank exposures behavior in the economic field attracted widespread attention, but the traditional research mainly focuses on the external perspective of regulatory capital, market constraints, less considerate about the bank’s internal governance issues.In2007, the subprime crisis broke out, making people began to reflect on corporate governance from the perspective of bank risk behavior intrinsic motivation, but also makes the bank bears the relationship between corporate governance and risk behaviors become one of the important proposition urgent research. In recent years, China’s banking industry has made great progress and development, but China’s commercial banks are still problems in corporate governance. Still inadequate corporate governance structure, ownership is too concentrated, the factors of government intervention and improper incentive pay, will affect China’s commercial banks risk decision-making behavior, increasing the likelihood of loss of assets of commercial banks. So, corporate governance mechanism of commercial banks in the end is perfect? What is the relation between China’s commercial banks and the corporate governance mechanism exposures? These problems are solved academia theoretical topics. Therefore, the study of Chinese commercial banks corporate governance mechanisms and the relationship between risk-taking behavior of banks in order to clarify the mechanism of its impact on China’s commercial banks risk behavior, and on the basis of empirical tests, Draw conclusions and policy recommendations.The main novelty of this article is to:(1) research perspective. Since this measure of risk taken against targets two aspects, one is the overall risk, the other is a single kind of risk (credit risk), therefore, the paper comparative study by two empirical models, conclusions and policy recommendations drawn more perfect.(2) Based on the non-performing loan ratio is selected as the dependent variable, while select innovative risk-weighted assets to total assets (RWA) as a measure of overall risk, this paper has two explanatory variables.(3) the empirical method, the paper according to the Hausman test selected seven panel data regression model, fully consider the individual factors of commercial banks, and appropriate to exclude the relevance of empirical results among more convincing indicators.This paper is separate from five parts, introduces the ideas and the research framework used in this paper. The second part, by comparing the latest year for16listed banks index data, describe the current situation of China’s commercial banks to the corporate governance mechanism. The third part is the theoretical analysis, articles on corporate governance and risk involved bear theory was introduced to explain the corporate governance mechanism, specificity and governance mechanisms affect the banking firm of commercial banks, but also introduces the types of bank risk, proposed an innovative way affect the overall risk and credit risk both to the corporate governance of commercial banks on exposures. The fourth part is the empirical section, select the sample, the sample variables descriptive statistical analysis, and then select the correct test panel data model by Hausman empirical analysis, and empirical results obtained. The fifth part is the policy recommendations in this article, the empirical results of this part of the paper has been further elaborated and summarized, and raised banks to improve corporate governance mechanisms relevant policy recommendations.