Corporate Governance,Government Regulation and Bank Stability

By using the data collected from the years 2006 to 2012 of16 listed banks as samples,an empirical test was set up to analyze the impacts of corporate governance and government regulation towards bank stability. The results show that the nature and percentage of ownership of the largest shareholder,a...

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Bibliographic Details
Published in东华大学学报（英文版） Vol. 32; no. 4; pp. 700 - 704
Main Author 王宇明 曲洪建 高长春
Format Journal Article
LanguageEnglish
Published Glorious Sun School of Business & Management,Donghua University,Shanghai 200051,China%Fashion College,Shanghai University of Engineering Science,Shanghai 201620,China 31.08.2015
Subjects
capital regulation
corporate governance
franchise value
bank soundness
recessive Insurance
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Summary:By using the data collected from the years 2006 to 2012 of16 listed banks as samples,an empirical test was set up to analyze the impacts of corporate governance and government regulation towards bank stability. The results show that the nature and percentage of ownership of the largest shareholder,as well as the top10 shareholders, have no significant impact on bank stability.Supervision of board of directors increases bank stability, while independent directors could not play the role of supervision. Higher executive compensation increases bank stability,while shareholding of executives does not show much incentive function. Franchise value has self-regulatory effects. Capital regulation also improves bank stability. Implicit insurance covers the entire banking system.Improving corporate governance and government regulation to increase bank stability are put forward.
Bibliography:31-1920/N
By using the data collected from the years 2006 to 2012 of16 listed banks as samples,an empirical test was set up to analyze the impacts of corporate governance and government regulation towards bank stability. The results show that the nature and percentage of ownership of the largest shareholder,as well as the top10 shareholders, have no significant impact on bank stability.Supervision of board of directors increases bank stability, while independent directors could not play the role of supervision. Higher executive compensation increases bank stability,while shareholding of executives does not show much incentive function. Franchise value has self-regulatory effects. Capital regulation also improves bank stability. Implicit insurance covers the entire banking system.Improving corporate governance and government regulation to increase bank stability are put forward.
corporate governance franchise value capital regulation recessive Insurance bank soundness
WANG Yu-ming , QU Hong-jian, GAO Chang-chun （1 Glorious Sun School of Business ＆ Management, Donghua University, Shanghai 200051, China; 2 Fashion College, Shanghai University of Engineering Science, Shanghai201620, China）
ISSN:1672-5220