Research On The Independent Director System Of Chinese Family Listed Companies

On June 19th,2006, as the first company that realized full circulation of IPO, China CAMC Engineering Co., LTD went public. This demonstrates that China's capital market has entered into post era of split-share reform, with the realization of shares' circulation and securitization of economy. In China's capital market, private business is the subject of China's economy. And family-controlled company is the main form for the development of private business. Therefore, research on governance of family firm is important to research on governance of China listed companies on post era of split-share reform theoretically.The article chooses 237 family companies listed in 2008 as samples. On the basis of research on family firms at home and abroad, the article takes the angle of independent director system and analyzes current status of governance for China's family listed companies. The article establishes a multivariate regression model between three variable parameters of independent director system(i.e. the proportion of independent directors to board of directors, independent directors' salary and independent directors'reputation) and variable parameters of family listed companies' operating performance(i.e. chief return on assets). Then the article will carry on with correlation analysis and empirical study, lifting the veil of independent director system for family listed companies. Empirical results show that the proportion of independent directors to board of directors, independent directors'salary and independent directors'reputation are not significantly related to governance efficiency. According to empirical results, this paper points out the independent director system in family firms, such as small proportion of independent directors, short history of independent director system, system of fixed remuneration of independent directors, the independent directors have other company positions, lead to the poor effects after the use of independent director system in family firms. At the end of the paper, there are some recommendations about how to perfect the independent director system in the family firms, which has some reference value for the future development of the family firms...