An Empirical Research: Information Cost And The Proportion Of Independent Directors And The Performance Of Company

In January2002, the China Securities Regulatory Commission, the StateEconomic and Trade Commission jointly issued the "Corporate GovernanceGuidelines. Independent director system as an important aspect of corporategovernance, in our country has gone through11years, but the implementation of thesystem of independent directors is valid in our country which is the focus of theacademic community has been concerned about. Many foreign scholars study foundthat the cost of information will affect the independent directors play. Our scholars forthe independent director system and results of the relationship as well as the system ofindependent directors and other corporate governance mechanisms on theperformance of the company have done a lot of research.The analysis using empiricalmethods to introduce information costs, research, independent directors and companyperformance in different information costs high and low, and governance issuesrelated to the proposal aims for our company.In order to study the cost of the independent director system and theperformance of the company, first of all, the article in reference to the differences andanalyst information costs, including the number of securities analysts and analystsabroad the forecast error of three indicators above measure on the basis ofstandardized summation, and using paired samples to test the feasibility of theindicators, the indicators feasible. Secondly this article from the cost of informationand the relationship of the independent director system, and then start from theinteraction of the independent director system and the performance of the company,the assumption: the case of the other conditions remain unchanged, the higher the costof information, the independence of the board and the largest shareholder held sharesproportion complementary relationship is weaker, thereby affecting the performanceof the company; also analysis of control variables that affect the performance of thecompany; thus the impact on the performance of the company again, the2009-2011data of listed companies as samples from an empirical point of view to analyze theimpact of the cost of the independent director system in listed companies and do thetest.In this paper, the study finds that the independent directors of listed companiesand low cost access to company information, the independence of the board and thelargest shareholder stake complementary relationship becomes stronger, theindependence of the Board and the top three executives pay complementaryrelationship becomes stronger,help to improve the performance of the company.Research significance of this paper is that the optimal proportion of independentdirectors should match the information environment of listed companies in a differentenvironment, the proportion of independent directors and corporate governancemechanisms of interaction, the degree of impact on the performance of the companyis different, so more specific policy recommendations to improve the efficiency ofcorporate governance.