Study On The Effect On Independence Of Independent Directors Of The Participation Of Venture Capital Investment

At present, the independent directors did not play its due role in our country’s listing Corporation, becansue of the independence of independent directors are not fully guaranteed. We can from inside and outside two aspects to analyze the reasons that hinder the independence of the independent director. The internal factors refer to independent director is a professional personnel in a field, may not very comprehensive understanding of other aspects of the company’s decision. The external factors refer to the independent directors’s selection mechanism, working mechanism,incentive and restraint mechanisms, exercise mechanisms are not perfect. And the participation of venture capital investment will have an important impact on corporate governance of listing Corporation, of course, on the independent director is not exceptional also, will affect the number of independent directors, the board of directors proportion. Does the participation of venture capital have effect on the independence of the independent directors? In this paper, we choose corporates that in Shenzhen SME board between2006to2011and in Shenzhen gem board between2009to2011as sample, first of all, empirical studies show that the participation of venture capital affect both the attendance of the independent directors and something of the independent directors, but the effect is not significant. Secondly, the degree of the participation of venture capital will also affect the independence of the independent directors. Specifically, the more stake the vc grasp, the independent directors more dare to question, but when the vc number is more and more, it will has negative effct on the independent directors’question. Finally, the independent directors to play its independence, which is of independent directors on the company in question, had no positive effect on the performance of the company, it may be because the independent director’s lack of rich enterprise management knowledge and management experience, cannot play its due role to improve the performance of the company.