The Study On The Effect Of Independent Director System And Profitability Of Our Country's Listed Commercial Bank

Now most international advanced banks have already established relatively perfect corporate governance structure and introduced independent director system, by which it produces inside power of sustainable development and increasing change. With the further development of economical globalization, the foreign banks rush into China money market continuously which make our Country's commercial bank face more and more austere challenges. Under this situation, it is of great significance for banks to increase profitability and strengthen the international competitiveness by improving our Country's banks' operating efficiency and perfecting the independent director system.This paper provided a theoretical analysis of the character and the function of independent director system and the definition and influencing factors of banks' profitability, and then presented a thorough study on relationship between independent director system and bank's profitability.For the empirical research, this paper took seven characteristic variables as independent variables which included the independence,accountability,expertise,inspiritment of independent director system, and used the roae as dependent variable with two controlled variable: asset size and the number of outlets of bank to test relationship between independent director system and bank's profitability by pluralistic regression analysis. The main research conclusions are below: a significant positive correlation was found between the ratio of independent director with international background,the number of committee and profitability of bank. there is no significant correlation between profitability of bank and the ratio of independent director,ratio of attending the meeting themselves,concurrent director of board,ratio of independent director with bank background,salary of independent director.Then this paper gave some suggestions according to the results of this empirical research: the Chinese government should attaches high importance to the establishment of statutes and laws,improvement of the existing system of regulations and laws about independent director system,and introduce international talent actively and think globally,then we will increase profitability of commercial banks...