Dissertation > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods

The Empirical Research on the Effects of Corporate Governance to the Performance of Commercial Bank

Author HongYueFeng
Tutor XueQiang
School Dalian Maritime University
Course Business Administration
Keywords Commercial Bank Corporate Governance Comprehensive Performance
CLC F224
Type Master's thesis
Year 2011
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After the Financial Crisis happened in 1997, a sweeping financial tsunami happened again in 2008, numerous commercial banks have went bankrupt. When the financial tsunami haven’t subsided yet, it is necessary for us to analysis the problem of corporate governance of commercial bank once more. But both domestic and abroad research about governance structure are mainly concentrated on the study of listed companies, and the theory of corporate governance of commercial bank is still not mature, besides, the environment of Chinese commercial banks are in constant change. Therefore, in this situation, we should enrich the theory of the corporate governance of commercial banks for the vigorous development of commercial banks in China.This paper reviews the literature of corporate governance at first, then, applies the theory of corporate governance into a special industry-our country’s commercial banks. Based on the actual situation of our country’s commercial banks in recent years, we classify the corporate governance of commercial bank into four major aspects:equity governance, credit governance, board governance and incentive mechanism governance. And we formulate the comprehensive performance index including the profitability, growth, liquidity and safety by using the principal component analysis. Based on the theoretical analysis of the influence of four major governance aspects to performance, we establish single factor linear regression model and multivariate linear regression model respectively for empirical research.This paper concludes the following conclusions:Firstly, our country’s commercial banks’ equity concentration level and comprehensive performance level are positively correlated, and dispersive shareholding is helpful to improve the performance level; Secondly, the proportion of the state-owned stocks of our state-owned commercial banks is helpful in increasing the comprehensive performance level, so we should not reduce the proportion of state blindly; Thirdly, the proportion of our country’s commercial bank debt and comprehensive performance is positively correlated, and the concentration of debt is in poured u-shaped conic relationship with comprehensive performance; Fourthly, the size of the board of our country’s commercial banks is in u-shaped conic relationship with comprehensive performance; Fifthly, the total compensation of the management is not effective.

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