The Influence Of China Commercial Bank Governance Structure On Bank Efficiency Research

In recent years,to improve the efficiency of commercial banks to enhance the efficiency of commercial banks is becoming increasingly urgent.The research on the influence of the governance structure of Chinese commercial banks on the efficiency of banks is becoming more and more active.As the connotation of the governance structure of commercial banks is rich,the focus of different articles is not exactly the same.Theoretical and qualitative research begins with the combing and defining the connotation of the governance structure of commercial banks.And then began to analyze the particularity of the governance structure of China’s commercial banks.From the two aspects of ownership structure and executive compensation,respectively,and its possible impact on bank efficiency to make inference.From the reality study of China’s commercial governance structure,it is found that the existing ownership structure of commercial banks is different from that of western commercial banks,which is characterized by diversification of ownership structure and high concentration of ownership.At the same time,it is found that the lack of long-term incentive of executive compensation has a great influence on the implementation of incentive policies of commercial banks.The above theoretical research makes the author’s qualitative conclusion on the influence of the governance structure of the commercial banks on the bank’s efficiency,waiting for the follow-up empirical test.The empirical study aims to confirm the qualitative conclusions of the previous text.This paper chooses to separate the ownership structure from the executive compensation,and choose the two-stage DEA to calculate the bank efficiency.Through the two-stage DEA to measure the efficiency of the financing and investment stages of commercial banks,and to calculate whether the efficiency and equity relationship between the financing stage and the investment stage are different under different ownership structures.Then we use nonparametric Wilcoxon rank sum test and TOBIT regression to analyze the difference of the nature of different ownership and the efficiency of commercial banks under the ownership concentration.Finally,we quantitatively measure the influence of several main indicators on the efficiency of commercial banks in different years.It is found that the nature of ownership is closely related to the efficiency of commercial banks.The efficiency of different banks is different at different stages,and the empirical results support the ownership concentration and the positive correlation with the efficiency of commercial banks.On the other hand,through the 2012～2015 China 15 listed banks executive pay and efficiency analysis.It is concluded that executive compensation has a significant positive correlation with the efficiency of listed banks.Good governance and asset structure can help improve the efficiency of listed banks.At the same time,executive compensation is positively related to the quality of listed banks’ assets,and it is corroborated that the high salary incentive will encourage bank executives to work diligently to reduce the bank’s nonperforming loan ratio and thus reduce the loan loss reserve to the total amount of loans.