An Empirical Analysis On The Independent Director And Corporate Performance

Our country adopt two orientations of corporate governance mode, the BD ofsupervisors has not played the role as the way they should have, such as thecompany’s whitewashing and shift company’s assets，internal business and so on.Under this condition，independent director system was introduced in China in the1990s, and it has been a focus of academic research since its entrance in China. Thereis no doubt that the government, regulators or even listed companies want to improvethe efficiency of corporate governance and protect shareholders’ benefits throughstrengthening the BD’s independence and normative. However, the independentdirectors’ function, in particular whether it is helpful for company’s performance,remains to be discussed.This paper chooses the independent director features and performance relationshipwith the company as research content, combining normative analysis anddemonstration analysis, selecting Shanghai stock exchange index180listingCorporation as the research sample, eliminating financial enterprise and incompletedata or abnormalities of the Sample Firms, collecting and arranging total of109listing Corporation from2009to2011three years latest data, applicatingEconometrics for study, we find the existing problems of China’s current independentdirectors of listed corporate implementation of the system. This paper specificallybrings up some related countermeasures and suggestions to improving the system ofindependent directors.The conclusion shows that the attendance rate is not remarkably positive relevant tocorporate performance. But, the other characteristics of independent director areremarkably positive relevant to corporate performance.The innovation of this article is: the first is the choice of the variables. According tothe present implementation of independent directors system, choosing beyond legalproportion of independent directors as explanatory variables, we can’t discover in theexisting research results. In second, using the Tobin’ s Q and ROE as the index in mystudy. This literature is almost not.At last, according to the conclusions, It made the following recommendations: Fromthe system level, creating a good legal environment; from the level of society,cultivating the independent director talent market, establishing of independent directorand self-discipline organization to regulate their behavior; from the level of thecompany, increasing the proportion of independent directors, establishing reasonable incentive and restraint mechanisms; from the level of personal, serving as anindependent director of increase but not too multiple, striving to improve theircomprehensive quality, conducting self-discipline education actively.