Researeh On The Relationship Between The Director Independence And Corporate Performance Of Listed Manufacturing Companies

The independent director system is the core part of the listed company’s internal governance mechanisms. A good independent directors will try to monitor the behavior of senior managers, provide valuable suggestions to make maximum efforts to protect the interests of stakeholders. How to create a standardized set of independent director system is one of the most important tasks of modern corporate governance.How the director independence affects the performance of listed companies has always been a hot issue for scholars from various countries to study. So far, the theory has been very rich in this regard. However, due to different scholars research methods and the sampling, the conclusion of research in this area there is a great difference. In the existing research, scholars take into account the difference between the industries of the study results. But even in the same industry, different listed companies category, such as food and steel manufacturing, results on this topic may also be very different. In view of this, we selected light industry listed companies in the manufacturing industry listed companies as samples made an empirical study on the relationship between the characteristics of independent directors and corporate performance, and the results are explained and analyzed. This paper use both theoretical analysis and empirical analysis of research methods, to research the relationship between the characteristics of independent directors and corporate performance. First of all, the paper described the role of the meaning of the independent directors and corporate governance.. Then summarized the theory of independent directors, and do research hypotheses based on these theories. Secondly, in the selected sample data, the characteristics of independent directors variable descriptive statistics. The researchers then use the SPSS software on an independent director of the company characteristics of these samples were descriptive statistics, correlation analysis, and factor analysis, multiple linear regression method to verify the assumptions presented earlier.The results show that, independent directors, who comes from universities and other enterprises and institutions, and have accounting expertise background and corporate performance has no significant correlation with our hypothesis, there is a considerable difference; government background independentDirectors and corporate performance is not significantly, such a conclusion is in line with our expectations; independent directors’ remuneration and corporate performance there was no significant correlation, which is also beyond our expectation; banking background of independent directors, the independent directorslevel of education and corporate performance significantly positive correlation; positively related to the proportion of independent directors attended the Board meeting and the performance of the enterprise, from this conclusion, the independent Board of Directors attended the meeting or the Board irregularities played a certain deterrent;independent Director Age and corporate performance are positively correlated, indicating that the older independent directors to take advantage of its rich experience better; proportion of independent directors and corporate performance is positively related. Independent director ratio is a measure of the independence of the Board of the most important indicators, so from that point on we see that the improvement of the independence of the Board do to improve the effect of the governance of listed companies.Finally, by studying the independent director system of listed companies of light industry, this paper extends the related literature of independent directors and corporate performance, especially listed companies is similar to this emerging market economies in light manufacturing,.this paper provide some Relevant experience for companies which is going to hire independent directors.