An Empirical Study On The Independent Director System And Corporate Performance Of Listed Companies In Shanghai Stock Market Based On Industry

Since the introduction of the Independent Director System to our country, it has developed for several decades.However, it was originated from the U.S. and England after all, whether the function of the system, such as supervision, is applicable to our economic and social environment still deserve our research. In recent years manyChinesescholars have studied the relationship between corporate performance and the Independent Director System, but the conclusion was not consistent, and this paper provides some new evidence.This paper chooses the data of the Shanghai Stock Exchange’s A-shares Corporationin the year of2011as the sample, and analyzes the relationship between the Independent Director System and the corporate performance from the perspective of the industry.The financial indicators includingROE and ROA are selectedand the total assets and the liability ratio are used as control variables. The explanatory variables include the characteristics of the Board of Directors and independent directors, such as the average rewards of the independent directors, the average age, average attendance, the average number of part-time jobs and the scale of the independent directors relative to the total directors.After the regression analysis from the perspective of the industry, we come to the following conclusions:the relationship between the characters of the Board of Directors and the independent directors and the indicators of ROA are different in different industries. Specifically, the ROA of the manufacturing industry is negative related to the independent directors’average rewards and the age, and the ROA of the IT industry is negatively related to the number of part time jobs that the independent directors have, however, the ROA of the retail industry is negatively related to the independent directors’ average rewards, and positively related to the age and the number of part time jobs that the independent directors have.