Research On The Influence Factors Of Financial Innovation Efficiency Of Chinese Listed Commercial Banks

With the deep development of global economic integration and great changes of domestic economic transition environment,competitions among banking industry are becoming increasingly intense.So it's an important research topic for banks faced with transitions to figure out how to avoid homogeneous competitions and improve financial innovation efficiency.If our banking industry wants to promote transitional development,it will be significant and necessary for banks to identify present development pattern,adjust the path of development positively and lift banks' financial innovation efficiency in order to accomplish efficient and sustainable development.Firstly,this paper illustrates the research background and literature review on financial innovation of banking industry,then research content and method,innovative points and shortages of this paper.After that this study defines the concept of financial innovation efficiency of banking industry,followed by illustrating its detailed constitutive elements including three parts then analyzes 4 kinds of factors influencing banking innovation efficiency including banking corporate governance,input of innovation resources,application of information technology and banking risk management and their corresponding affecting mechanisms on innovation efficiency theoretically.Secondly this research uses super-efficiency SBM-DEA model and global Malmquist index model respectively to estimate static and dynamic innovation efficiency of domestic 14 listed commercial banks including state-owned banks,joint-stock banks and city commercial banks during 2009-2017 and also compares the innovation efficiency among different banks.And then Tobit panel data regression is conducted for those 4 kinds of factors that affect banking innovation efficiency.Finally this paper builds and estimates Translog stochastic frontier production function to test the robustness and reliability of prior empirical analysis result.As a result the test demonstrates the result' robustness and reliability.According to previous empirical study,we can find that first of all,in terms of the innovation efficiency,with continuous increase,both joint-stock banks and city commercial banks have surpassed state-owned banks successively in which innovation efficiency continues to decline.As a result joint-stock banks come to receive the highest ranking followed by city commercial banks and state-owned banks successively.Then through empirical analysis of influencing factors we can draw conclusions that in the banks' management structure,the trait that whether a bank is state-owned banks or not doesn't have any influence on the innovation efficiency while both increasing the proportions of independent board properly and augmenting executive compensation incentives are playing a significant role improving banks' financial innovation efficiency and executive compensation incentives can have a greater effect than proportions of independent board.By contrast,the branch constructions are reflecting that the input of innovation resources can not serve as a useful way to promote financial innovation efficiency and also impede the increase of financial innovation efficiency growth rate.Employment of information technology can promote banks' financial innovation efficiency significantly but at the same time it slows down the financial innovation efficiency growth rate.And banking risk management is playing a waning role in improving financial innovation efficiency.Finally,according to conclusions of empirical analysis,relevant policy suggestions are proposed from the aspects of banking corporate governance,input of innovation resources,application of information technology and banking risk management for banking industry to improve their financial innovation efficiency.