A Empirical Study On Relationship Between Company Governance And Mixed Performance Of Listed Banks In China

The financial hurricane impacting southeastern Asia in the last decade of last century and the mortgage crisis originating from America in 2007 damaged the regional and global economy very much. It has attracted much attention on bank governance problem from different field of society. The crisis happened in other countries also warned China even if the crisis mentioned did not impact China very much. On one side, with the financial market opening in China, more and more foreign financial organizations including banks enter into financial field of China. Chinese banks need to improve their company governance in order to cope with more fierce competition. On the other side, modern enterprise system developed very slowly in China, many flaws in bank governance make Chinese banks cannot adapt into free market well and this situation should be changed. At the same time, there are many characters of bank as a kind of special financial organization different from normal company so that attentions should be paid on bank’s different characters when studying on bank governance. Only in this way the scientific and logical conclusion can been made. Firstly this article describes the basic concept and principle of company governance. And the most attention paid on analyzing the characters of bank and bank governance. One conclusion is that bank governance is realized mainly by its inner governance system. The studying of next step is analyzing the relationship between main governance factors and bank performance by using bank’s data of recent year and trying to offer some viable advises on bettering bank governance to improve its performance. The main conclusion of this article is those:(1) on ownership structure, the share amount of biggest shareholder would damage the performance of banks;(2) on the board governance, bigger the board is, the worse bank performance is;(3) the wage of managers does not influence bank’s performance much. And the main advise for improve performance is these:(1) dispersing ownership and importing strategic investors;(2) better the independent director system;(3) focusing on long term encouraging mechanism.