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Chinese Journal of Management Science ›› 2010, Vol. 18 ›› Issue (5): 49-57.

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Study on the Introduction of Foreign Strategic Investors to Affect the Efficiency of Chinese Commercial Banks

HE Jiao, FU Qiang, PAN Lu   

  1. School of Economic and Management, Chongqing Univesity, Chongqing 400030, China
  • Received:2009-12-24 Revised:2010-07-25 Online:2010-10-30 Published:2010-10-30

Abstract: In the current significant acceleration of Chinese banking to introduce foreign strategic investors,this paper wants to answer the question,after the introduction of foreign strategic investors,whether the impact of the efficiency of commercial banks has important theoretical significance and practical value.The equity structure of commercial banks can be divided into three class.Based on the theoretical model of stochastic frontier method and the amendment output method a cost and profit equation is built.The empirical study of the efficiency of commorciol Danks with foreign strategic investor in China is qloew Empiricalre sults show that:the introduction of foreign strategic investors,not only improves the bank's cost efficiency and promotes greater efficiency in the banking profits.The research also shows that.The implemantation of "financial rest ructuring-the intro duction of strategic investors-market-improving governance system" improves the efficiency of the banking industry.

Key words: foreign strategic investors, stochastic frontier approach, cost efficiency, profit efficiency

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