Study On The Relationship Between Corporate Governance And The Bank Efficiency

As the third emerging echelon of Chinese commercial banks, the city commercial banks have grown in obscurity for a long time. With the stronger market competition, the city commercial banks can't stand still, but seek after novelty and reormation. Certainly,one of the focal points about the reform is how to suffice the corporate governance,stimulate the internal vigor and improve the competitiveness.On the basis of the research achievements, firstly, this thesis analyzes the meaning and importance of corporate governance, the main different of corporate governance between bank and other enterprise according to the particularity of the bank, and the current situation of the China's city commercial banks' corporate governance. Secondly, this article uses DEA(data envelopment analysis) and Malmquist Productivity Index to analyze technical efficiency of 58 banks including large commercial banks, joint-equity commercial banks and city commercial banks. Finally, the paper empirically tests the relationship between internal governance and performance of China's 44 city commercial bank by using SAS9.3. The empirical results of the essay show:(1) In the respect of shareholding structure, the proportion of the largest shareholder and the nature, z index, the proportion of state-owned stocks are significantly negative related to the bank efficiency; The share holding ratio of the top two to ten shareholders is positive to the bank efficiency; the proportion of foreign share is not effective.(2) At the board level, the independent director ratio and CEO duality are negatively correlated with the bank efficiency; the board size and the times of the board meetings don't correlate with the bank efficiency.(3) On the board of supervisors, the scale of the supervisory board and the external supervisor ratio to the bank efficiency are negatively correlated; the relation between the frequency of board supervisor's conference and the bank efficiency is not clear.(4)In the management control, the management size and the executive pay negatively affect the bank efficiency; the occupation years of governors and the education degree of senior management do not significantly affect the performance.According to the situation analysis and empirical results, the article makes several suggestions to improve city commercial banks ' corporate governance:(l) Adhere to the state retreats and balance the ownership structure to optimize the share right structure.(2)Concentrate on institutional improvement, intensify the supervision and evaluation and improve the quality of meeting to perfect the director and supervisors' governance mechanism.(3) Optimizing the structure of salary and reconstruct constraint mechanism to improve the encouragement policy.