Empirical Research Of Relaitonship Between The System Of Independent Director And Company Performance

In recent years, our country has promulgated the relevant policy of supporting andencouraging the development of small and medium-sized enterprises(SME).SME has beengreatly developed, to further promote the development of China’s economy, but it will alsoface greater difficulties and challenges. Financing is one of the biggest difficulties.Basedon this,CSRC May set up the small and medium-sized plate in2004. Thus, small andmedium-sized market has been relatively rapid development,and has importantsignificance.But because of its short established time, compared with the relatively maturein the motherboard market, there are still a lot of problems. Irrational equity structureespecially the "an only big" phenomenon exists in it,listed in the market of the company, itspredecessor for the family business,internal control is more serious, the actual controllersoften in order to gain all kinds of "insider trading", to the detriment of the company and theinterests of small shareholders, hit the capital market development. Based on this, theintroduction of independent director system becomes more necessary. Through theindependent directors can effectively supervise, in order to improve the performance of thecompany, to protect the interests of shareholders.Since the introduction of independentdirector system in China, the system should run, is valid and effective degree etc. havebeen academic controversy. The previous studies, scholars mainly in the main boardmarket listing companies as the sample, although the research conclusion is universal, butis not detailed enough. The small and medium-sized market has its own characteristics, butseldom until today about the independent director system in it.This paper will focus on the effect of independent director system board small andmedium-sized listing Corporation to its performance. Research methods of this articlemainly uses the normative and empirical, in the normative study, introduce economics,efficiency of alternative, game theory analysis; in the empirical study, this paper selectedthe2009all companies listed in the small board before the three years (09years to11years)data, as the sample. The "independent director salary""independent director ratio"independent directors "age""independent director overseas background""independentdirector meeting attendance" as explanatory variables, as well as "deducting non-recurringprofit and loss rate of return on net assets" as explained variable, and select three importantcontrol variables (firm size, asset-liability ratio, the first big shareholders), and then build aregression model, it makes a conclusion. Through this combination of theoretical andempirical way, trying to make the research results more accurate. Finally, based on theconclusions, put forward corresponding countermeasures, aiming to make theimprovement of the independent director system, so that it can fully play its role, so as toimprove the small and medium-sized market, promote the development of.company.