An Empirical Study On Board Specific Resources And Commercial Bank Performance

Commercial Banks play an important role in allocation of resources, financial system stability and macroeconomic growth. In China’s financial system, the status of commercial Banks is more important. As the integration of the world economy and the transformation of China’s economic development, the market entry of commercial Banks in developed countries and the China’s financial reform brings unprecedented impact on commercials bank of China. Profit mode relying mainly on the interest income traditionally is no longer suitable for the development of China’s commercial Banks in the future. The implementation of financial innovation is an effective way for Chinese commercial Banks to maintain competitive advantage.In the 1970s, the research on board governance become a hotspot in the field of corporate governance gradually. In 2003, the two scholars Hilleman and Dalziel put forward the concept of board capital. Since then, many scholars started to do the research on the relationship between the board capital and the growth and value of enterprise. But the research of board capital on commercial banks is relatively rare, and the domestic is lacking of necessary documents much less than abroad.Based on the China’s 16 listed commercial Banks in 2004-2013, we explore the relationship between the board capital and innovation capacity and the financial performance in banking from the perspective of the board capital of commercial banks. Board capital are divided into four dimensions in this thesis, respectively, the human capital, the distribution of the human capital, the social capital, the distribution of the social capital. The empirical results show that:first, the increase in human capital and social capital is helpful to improve innovation capacity of commercial Banks; Second, the uniform distribution of human capital and the concentration distribution of social capital is positively related to the innovation capacity of commercial Banks separately; Third, the situation that directors do much more part-time job in different enterprises is detrimental to the efficient conversion of capital; Fourth, innovation capacity of commercial banks mediated the moderating effect of director’s effort on the relationship between board capital and financial performance. Social capital is helpful to improve innovation capacity of commercial Banks; Second, the uniform distribution of human capital and the concentration distribution of social capital is positively related to the innovation capacity of commercial Banks separately; Third, the situation that directors do much more part-time job in different enterprises is detrimental to the efficient conversion of capital; Fourth, innovation capacity of commercial banks mediated the moderating effect of director’s effort on the relationship between board capital and financial performance.