The Empirical Research Of The Relationship Of Board Capital?Diversification Strategy And China Commercial Bank Performance

With the growing wave of global financial integration and liberalization,and financial disintermediation and the speeding up of marketization of interest rate,China's banking industry keeps up with the trend of the development of the world financial industry,gradually performing the strategy of diversification,directly providing the customers with banking,insurance,investment and financial service and other financial products and service.The board of directors is the core of the corporate governance mechanism,plays the role of strategic decision-making and influences the company's strategic preferences.In recent years,the board capital provides a new perspective for the research of strategic decision.At present,the research mainly focused on the background of western countries;domestic scholars rarely study it.So,this article,from the view of the board capital,mainly researches the relationship of board capital,strategy of diversification and performance of banks of China's listed commercial banks.Based on literature review,we build integrated analysis framework,under the perspective of diversification strategy,for the relationship between board capital and performance of banks.Under the Theory of Resource-Based and the framework of resource-strategy-performance,we systematically studied the relationship of board capital and performance of bank.This paper researches the effect of Board Capital on Performance of Banks,from two aspects(namely,direct and indirect influence).Specifically,this paper will mainly study the following two questions:(1)Whether the board capital would impact the Bank Performance?(2)Whether diversification has the mediating effect on the relationship of board capital and bank performance?This article,by theoretical discussion and empirical analysis,has reached the following two conclusions:(1)The average age and the heterogeneity of working experience of the board have significantly and positively effect on bank performance;(2)The diversification strategy does not have mediating effect on the relation of Board Capital and the board bank performance.