A Study On The Role Of Commercial Banks In Corporate Governance In China

From the 80 s of last century,the research on corporate governance was once a hot topic in academia.The level of corporate governance not only directly affects the shareholders and investors' earnings,management performance,the company's development prospects,but also have a significant impact on asset security to the important creditors of bank.However,for a long time,it has been widely believed that the main body of corporate governance should be its owner,shareholders,shareholders entrusted managers to manage and jointly achieve the company's governance.Until the stakeholder theory replaces "shareholder supremacy",the main body of corporate governance is expanded to include all shareholders,creditors,employees.Banks participate in corporate governance began to enter the people's vision.At present,there are three types of banks participating in corporate governance,namely,the British and American distance corporate governance model,Japan's main bank system,Germany's all-round banking system.In the case of China's capital market is not yet developed,the company's external financing to a large extent dependent on bank loans,so the efficiency of corporate governance directly affect the interests of bank creditors.With the development of economy and the deepening of theoretical research,the voice of banks to participate in corporate governance is getting higher and higher?Although the laws of our country prohibit commercial banks from holding non-financial institutions,but since March 2016 since the market-oriented debt gradually proposed,the major projects gradually completed,the role of bank holdings in corporate governance more cause for concern.This paper mainly studies the role of commercial banks in corporate governance in China.The conclusion is that banks can improve the level of corporate governance through creditor participation and equity participation,thus protecting the interests of banks and other stakeholders.First of all,this paper analyzes the theoretical basis and realistic basis of bank participation in corporate governance.Through the theory of financial intermediary and corporate governance theory,it is pointed out that banks participate in corporate governance is a theoretical basis.The bank is an important force of corporate governance,the lack of bank security and the internal management of the internal ineffective situation for the bank to participate in corporate governance to provide a realistic basis for the market to convert debt is an important driving force.Secondly,this paper studies the role of bank debt in corporate governance,and holds that the bank's creditor's rights have supervisory function.The supervision of the bank is better than the market supervision,which is better than the supervision of the shareholders.It is better than the supervision of other creditors.,The centralized management of bank claims,and the financial supervision effect of bank claims to promote the improvement of corporate governance.The term structure of the bank's debt affects the company's free cash flow,restrains the behavior of the shareholders and the operator,and produces an incentive effect;it can send an effective signal to reflect the true value of the enterprise and reduce the information asymmetry.The higher the degree of creditor's rights,the more obvious the supervisory effect of creditor's rights.Bank claims can also have an impact on the company's financial decision-making mechanism,financial restraint mechanism and financial incentive mechanism.Thirdly,this paper studies the role of bank holdings in corporate governance.Banks can hold shares in enterprises through various means-passive holdings in bankruptcy reorganization,through the establishment of overseas subsidiaries for equity investment,,Such as investment loans.Among them,the market of debt-to-equity swap and investment linkage will be the main way of future bank holdings.Bank holdings have a coordinating role in interest,help to reduce the company's internal agency issues,help to enhance the company's internal financing capacity,help to enhance the value of the company.The main innovation of this paper lies in the innovation of the research perspective,from the legal status of the bank to participate in corporate governance is divided into credential participation and equity participation,from the two ways to focus on the study of bank debt and bank holdings in corporate governance The role.In the study of equity governance,the bank debt is separated from the company's total creditor's rights,focusing on the role of bank debt supervision in the company;in the study of equity governance,the paper analyzes the interests of banks and reduces the cost of agency,Improve the financing capacity,enhance the value of the company and so on.The main shortcomings of this paper: the first is the analysis of the role of banks,emphasis on theoretical research,did not use empirical tests,which is the next step in the direction of efforts.Second,this paper focuses on the positive role of banks in corporate governance,and the negative impact of their involvement in corporate governance is not done too much.