An Empirical Analysis On The Relationship Between Characteristics Of Independent Director And Corporate Performance Of Small And Medium-sized Enterprises

With the development of economy, the small and medium-sized enterprise(SMEs) rises as a new force and has gradually become an important force in promoting China’s economic development and social progress. Established in 2004, the Shenzhen SME board widened the small and medium-sized enterprises’ financing channel, bringing more development opportunities for SMEs. Butbecause of the scale limits and the time since set up is short, there are still problems in the corporate governance structure. As a major reform ofcorporate governance, The system of independent directors plays a very important role in improving the corporate governance structure of SMEs.Therefore, in view of the SMEs’ particularity and importance, the research on the relationship between the characteristics of the independent director and firm performance is very important in improving the corporate governancestructure and enhance the performance of the company.This paper will focus on the relationship between the characteristics of independent directors in SMEs and firm performance,starting from the small and medium-sized listing corporate governance structure, points out the defects of it, based on the principal agent theory, resource dependence theory and incentive theory, explain the necessity of introducing the independent director system. Then starting from the inner logic of the two aspects, put forward the hypothesis. Then carry on the analysis on the assumptions, which is from the quantity, the proportion of independent directors, salary, age, place of work and attendance. Through descriptive statistical analysis, correlation analysis, regression analysis, clarify the relationship between these characteristics of independent director and the performance of enterprises. Then come out with the empirical conclusion: there is a certain correlation between characteristics of independent directors and corporate performance. The relevance betweenthe characteristics ofquantity, salary, age, attendance and corporate performance is significant, the variablesofproportion is not.Finally, according to empirical research conclusion, put forward the related counter measures and suggestions from the selection and construction of independent director system.