Empirical Study On The Impact Of Board Characteristics Of Listed Small And Medium Commercial Banks On Performance

The board of directors is the core of the internal governance of the company,which is an important factor affecting company performance.And it has a great influence on the development of the company.At the same time,the board of directors,as an important institution in the modern company,not only has the right to operate and manage the company,but also has the enforcement rights granted by the general meeting of shareholders.With the further improvement of the market economy and the development of modern companies,whether the board of directors can play its role,which will have a great influence on the formulation of the company's major strategic decision-making policy.Howe-ver,there are many problems about board of small and medium-sized commerci-al banks.Compared to the five state-owned commercial banks,the independence of the board of directors of the small and medium-sized commercial banks is relatively poor.The government often interferes with the day-to-day affairs of the board of directors,which affects the formulation of bank board decisions,making it is impossible for small and medium-sized commercial banks to actively change based on the actual situation.It will affect the independent development of small and medium-sized banks and will not be conducive to enhance the operating performance of commercial banks.Therefore,it is theoretical and practical significance to deeply study the effect of board characteristics on perf-ormance of China's small and medium-sized commercial banks.First,the article introduces the background of listed small and medium-sized banks,second,based on the literature review and theoretical analysis,the paper analyzes the effect of board characteristics on bank's performance,finally,puts fo-rward countermeasures and suggestions.In empirical research,the paper selects11 listed small and medium-sized commercial banks from 2011 to 2016 and bu-ilds the panel data model with Eviews8.0 software.According to the empirical results,size of board and compensation of board members have a positive cor-relation with bank's performance,number of board meetings has a negative corr-elation with bank's performance,proportion of independent directors and average age of board members failed to pass the significance test.Finally,based on the empirical research,the paper puts forward correspondi-ng countermeasures and suggestions.First,appropriately increase the size of the board;Second,improve the system of independent directors;Third,improve the efficiency of board meeting mechanism;Fourth,pay attention to the cultivation of young directors and increase the age gap of directors;Fifth,establish a perfect incentive system of compensation.