Empirical Study On How Corporate Governance Of Domestic Listed Commercial Banks Impact On Business Performance

As a distinct industry, commercial bank plays an important role in financial sectorand even the whole modern economy of China. With the acceleration of globaleconomic integration process and opening finance market, banking industry is facingincreasing challenges and competition under the situation of more and more foreignbanks enter the domestic financial market. Commercial bank must have strongcompetitive ability in order to occupy a place in the fierce competition, however, goodgovernance structure of commercial banks is the fundamental guarantee of the strongcompetitive ability. With the stock system reform of commercial bank, reform andimprove its governance structure is an important way to enhance the competitiveness ofthe bank. From the mid-1990s began in June1997with the outbreak of the Asianfinancial crisis and the complexity of sub-prime mortgage crisis in2007as the impactof the fuse economic crisis caused a worldwide community of commercial banks forgeneral corporate governance issues concern, therefore, bank corporate governancenaturally become an essential factor which affect the sustained and stable economicgrowth of one country or even the whole world.In the special industry background of commercial banks, its governance structureis slightly more complex than general business. Under the supervision of the ChinaBanking Regulatory Commission(CBRC), it is required that the domestic commercialbank concern not only the performance and the benefits of the owners but also thebenefits of savers, the public and other relevant stakeholders, thus ensuring a lasting andhealthy development of the commercial bank. Therefore, this paper studies thegovernance structure of commercial bank how impact on its performance throughtheory and empirical research and trying to find out the potential problems of thegovernance structure of commercial bank, then give solutions of how to improve thegovernance structure of commercial bank to make it more competitive.Based on reviews of the relevant literature about the impact of corporategovernance on performance, first from the basic theory of corporate governance, takethe impact of all aspects in the governance structure of commercial banks onperformance as the study object, a detailed analysis of the level of bank equity structureBoard level, the Board of Supervisors and executive compensation incentives affect thelevel of four levels of performance. According to scholars research on the structure and governance of commercial banks Performance this topic, select from multiple anglesbank performance indicators to measure as the basis for comprehensive performancecomputing, research hypotheses were proposed governance structure from four aspects.To test the hypothesis, a comprehensive analysis of this paper to collect data on thebasis of commercial banks2009-2013final selection of listed commercial banks, as thestudy sample, using principal component analysis method to get the comprehensiveperformance of commercial banks and used as the dependent variable, in basicdescriptive statistical analysis the independent variables and the dependent variable, themulti-factor regression model based on regression analysis, the results are as follows: anappropriate concentration of ownership for optimum business performance; equitybalance degree, the Board of Supervisors and the top three executive pay scale the totalpositive correlation; board size, board meetings negatively affect the operatingperformance; proportion of independent directors had no effect on performance. Finally,according to the empirical study concluded that some suggestions on improving thegovernance structure of listed banks companies, and pointed out the lack of research inthis paper and research prospects.