Research On The Development And Application Of Commercial Bank’s Corporate Governance Scale

The commercial bank, which played as an intermediate payment in the traditionalbusiness trade, highlights the function of credit creating and financial serviceproviding with the appearance of electronic commerce and Alipay. As being the pillarorganization of the national financial system, the development of commercial bankhas a profound impact on the national stability and trading relationship with the othercountries around the world. In order to enhance the performance of corporategovernance, maximize the enterprise value, commercial banks should pay moreattention on the corporate governance. Therefore, developing a corporate governancescale for commercial banks has a practical and significant sense.In this thesis, the scale of commercial banks’ corporate governance has beendeveloped after a widely review of the literature on the commercial banks’ corporategovernance from domestic and abroad. Based on the mature corporate governancerating system, the developing process of the scale also has taken the particularity ofcommercial banks into consideration. Beyond the principle of objectivity, pertinenceand suitability, finally the scale is successfully built with20items related to thecommercial banks’ corporate governance. Results from the reliability and validityexamination shows that the scale has an efficient structure and the content is effective.This paper has also listed commercial bank A as an example to show the process ofapplying the scale and how to analysis and explain the outcome of application.The scale can be adopted by the regulators of commercial banks for it can providecorporate governance information of the target commercial banks. These regulatorscan also make a horizontal or vertical comparison to get the causes for differentdegrees of corporate governance and try to take measures to enhance the governance.Furthermore, investors can take the scale result as a reference to make investmentdecisions, and commercial bank can take use of the scale result to fund with a lowcost. Besides, the commercial bank can use the scale for regular checking, clarifyingthe matters of corporate governance as soon as it appears.The paper contains three innovation points. Though the scale is developmentbased on the existing corporate governance rating system, the applicable object, process and results between the two researches are apparently different. Moreover,information involved in the scale can not only be found in the publicly publishedreports but also sourced from feedbacks of governance.