Independent Directors On The Impact Of Company Performance

Independent director system is an important innovation in the Western countries. To improve the corporate governance structure, the independent director system has been considered as a significant development both in theory and in practice.In 2001, In order to solve the serious problem of insider control agents and promote the standardized operation of listed companies, China decided to introduce independent director system.So far, the independent director system in China has implemented about 10 years, and the issue of whether it has played an active and effective role in listed companies has been studied by many scholars. Because there is still no consistent conclusion in this issue, so it should be meaningful exploring further in the effect of the independent director system from the perspective of the family of listed companies.Family enterprises in China occupy an important position in economic development, more than 90% of private enterprises are family businesses, the economic development of China has a major contribution. Family of listed companies in China, the development and improvement of domestic capital markets is closely related to how to improve the governance of listed companies in the domestic status of family, protection of minority shareholders interests, and promoting Chinese capital market and financial market development is also a pressing problem in China, therefore, the perspective of the family of listed companies on corporate governance Independent Director System efficiency and performance, and put forward constructive policy recommendations, has important economic significance.This article is divided into six chapters, layers of analysis on the independent director system to start, as follows:The chapter one introduces the research background and significance, leads to the subject matter, and then explain the article, research ideas and methods, a whole article about research on understanding. The chapter two reviews the independent family business and the independent director system review related research to better understand issues related to previous academic research on this, to be a good grasp of the overall research priorities. At the same time the theory of independent director system based on theoretical analysis of the independent director system, demonstrated the existence of independent directors of the importance of the system.The chapter three is the family of the Independent Directors of the mechanism analysis, including the development of independent directors and independent directors of listed companies in the family system Mechanism.The Chapter four and five of this paper's empirical analysis, by selecting the 2009 family of companies listed in Shanghai and Shenzhen as samples, excluding non-recurring capital gains rate is the dependent variable; proportion of independent directors, independent director compensation independent directors was meeting to explain the variable ground; to asset-liability ratio, the natural logarithm of total assets, ratio of the largest shareholder and control rights and cash flow rights to control variables, multiple regression model, collected more data, Descriptive statistical analysis and multiple linear regression analysis, the final draw conclusions, the results show that only independent directors are related pay and company performance, while the proportion of independent directors and independent directors meetings to the ground rate and not related to company performance, through the This conclusion is further deep analysis.The last chapter is policy recommendations, through the analysis of the independent director system, the independent director system in China that there are still many shortcomings, which gives the targeted policy recommendations to better improve the system of independent directors, so that The listed companies in China to play a better role in improving the corporate governance structure, enhance the company's performance.The main innovations are the following:First, we select the family business angle of view is different from the general public is now more common to study, research perspective is new;Second, the independent directors of the Chinese family business system factors and company performance indicators as the theoretical basis of empirical variables, that this is the second innovation; Again,the paper selected to exclude non-recurring gains and losses of assets yield performance indicators, to avoid large fluctuations in net profit, more objective.Finally, the independent director system in a comprehensive analysis, the proposed targeted recommendations for improving the system of independent directors to make a contribution.This study there are also disadvantages:First, the choice is mainly reflected in the uncertainty of the sample, which leads us in screening samples and previous studies researchers have some differences in diameter, may affect the results.Second, in the finishing process some data, some need to be done manually, so there may be some errors on the empirical analysis may have some effect.