Research On The Risk-Taking Behaviors Of Chinese Listed Financial Institutions

Financial institutions risk-taking behavior determines the performance of financial institutions not only realizes, but also affects the interests of the financial institutions in the internal and external stakeholders, which makes the financial institutions explore the influential factors of risk-taking behavior, which gradually become the focus of academic research topic in recent years. In 2008, the outbreak of the financial crisis has made the development of the financial institutions robustness that has become the focus of the part, and the deep-seated reasons behind the financial crisis also have a lot of scholars to carry on the detailed explanation, specific to see these explanations can be divided into product risk hypothesis and system dynamics theory. Among them, the system dynamics hypothesis for financial institutions of governance issues led to the outbreak of the financial crisis. Therefore, this article focuses on the perspective of corporate governance to explore the relationship between financial institutions risk-taking behavior and corporate governance.In this study, this paper analyzes from 2003 to 2014 Chinese listed financial institutions’ risk-taking behavior. According to the related theory research, this paper put forward 7 research hypothesis. From CSMAR, CCER and RESSET database data, this paper constructs the corporate governance index(CGI), through the data processing, this paper finally chose the 2003 to 2014, a total of 410 financial institutions of the unbalanced panel as the research samples. This article selects the two-factor model of total risk, system risk, interest rate risk and unsystematic risk as explained variable, to measure the risk-taking behavior of listed financial institutions. The CGI is based on shareholder governance, board governance, supervisory board governance, manager government, information disclosure and stakeholder governance from six aspects to measure the level of corporate governance of listed financial institutions. This paper also selected the franchise value, company size, age and growth rate of total assets and ROE as control variables. Then from the corporate governance index, corporate governance mechanism carry on the panel data regression analysis.Through empirical test, this paper gets the conclusion that from the point of total index, the corporate governance of listed financial institutions and risk-taking behavior show negative relationship; From the view of mechanism, board governance index, supervisory board governance index, manager governance index and stakeholder governance index in financial institutions to curb risk-taking behavior played a role; From the perspective of the specific indicators of corporate governance, director of the proportion of shareholding, dong alone, and risk-taking behavior is inversely related; Supervisors holdings, the number of meetings of the board of supervisors, chairman of the supervisory board change and risk-taking behavior is negative relationship; Company ST treatment had a negative relationship with risk-taking behavior. The joining together of two position and risk-taking behaviors were positively associated with; Chairman of the board of directors, supervisory board chairman, general manager of frequent change makes financial institutions more inclined to take risks.