The Research Of Correlativity Between Independent Director’s Features And Audit Quality

Independent director is independent of the shareholders of the company and not in thecompany of the internal representation, no business or professional relationship important andwith the company or the company management, and make an independent judgment on CorporateAffairs director. As a member of the board of directors, the independent directors in the westerncountries have been very popular, and have played a very important role in corporate governance.Independent directors from abroad has been introduced into China for10years, did not appear toexert their supervisory and advisory functions, and the independent director to perform the dutiesof road is restricted by various factors. What are the effects of independent directors andindependent audit quality, and can play a supervisory function, effectively avoid the listingCorporation accounting data fraud, improve enterprise independent audit quality, should be testedby empirical analysis.This paper starts with the literature review, and then based on the theory of independentdirectors and audit quality has made the analysis. In the empirical part, the author chooses the2009-2011listing Corporation in Shenzhen stock exchange as sample data. The explainedvariable selection of auditor industry specialization of this index is also a measure of the quality ofindependent audit. The explanatory variables select relevant features of independent director age,gender, tenure, the reporting period salary, education background as independent directors. Uselogistic method to make an empirical test on the model analysis, regression analysis. Results showthat independent directors at the time had significant negative correlation with the audit qualityimprovement; there is a significant positive correlation between the independent director’seducational background and the independent audit quality; the independent directors of the gender,age, salary and quality of independent audit report period no significant relationship. Author hopethis paper can promote independent directors in the benign development in China, provide supportto improve China’s listing Corporation financial report audit quality.