An Empirical Study On The Relationship Between Independent Director System And Accounting Transparency

Independent director system was first established in the common law countries. Its purpose is to strengthen internal power balancing mechanism, overcome"internal person"control problem, change knowledge structures of board of directors, enhance scientific decision-making of board of directors and meet other requirements. Since mid-1990s, more and more countries and areas have introduced independent director system. While these countries and areas standardize and improve the structure of corporate governance, they all take independent director system as an important thing, resulting at an"independent director system revolution"in the corporate governance. The independent trustee system went on a process from exterior absorption to internal digestion after it was introduced to listed companies of China. With some domestic companies listing on the overseas stock market, company management increasingly improve their understanding and absorption to the independent director system. Independent director system is a huge system innovation to the listed companies of our country. It was regarded as a panacea so introduced to our country. It is hoped that the system can help to solve the problem in legal person governance structure of enterprise and protect small&mid sized investors and so on. Because of this, the people entrusted independent director with the roles in supervising, strategic and political aspects."The case of Lu Jiahao, independent director of Zheng Baiwen"has initiated the general public of our country pondering over the series of problem in independent director system: whether"honorable"exterior independent director, who does not participate in the daily operation for company, even not reading financial reports, should be responsible for the disclosure and accounting information quality of listed company. Is the independent director willing to be"vase"ornament for listed company? Or acts as the"scarecrow"? Since independent director system established in the listed companies of our country, has there been any relationship between independent director and accounting information transparency of listed companies? These years particularly, the case of financial reporting fraud in...