Research On Effects Of Financial Independent Directors Background To The Quality Of Accounting Information

There is13years old since the independent director system being introduced in China.China CSRC promulgated "on the establishment of independent director system in the listingCorporation guidance"(2001), in the provision the board of members in which at least oneaccounting professionals, this rule has aroused widespread concern in the community. Thepurpose of the system is intended to use the accounting professional expertise to ensure andenhance the quality of accounting information. And the purpose of the system is achieved?How the validity of the system? Unfortunately, although many studies in the literature onindependent directors, but specifically for financial background of the independent directorsof literature is rarely. This paper uses the method of combining theory with practice to studyabout improve the company’s accounting information quality of this proposition on thefinancial background of the independent director to find the related conclusion.Main work and result of research are follows:（1）Research on the financial background of independent directors have the ratio of thenumber of explanatory variables, the results showed that the independent director financialbackground can help to improve the quality of accounting.（2）To subdivide the financial background of the independent directors and defines theexpert and practical type of two kinds of Financial Independent Directors and has carried onthe empirical test. It is found that both the practical or expert financial independent directorscan be helped on accounting information quality. This also implies the financial independentdirectors according to the "guidance" requirement to fulfill their duties, to play a supervisoryrole to the board of directors. The expert is better than the practical director to the accountinginformation.（3）The asset liability ratio the company size and the size of the board of directorsvariables will have impact on the quality of accounting information, and the effect isremarkable. The asset liability ratio is higher, the enterprise accounting information quality ispoorer, which indicates high liabilities of enterprises have the motivation of fraud; the boardsize and the level of accounting information quality is positively related to relationship. because of the information asymmetry, the greater size of the company, the more afraid ofdepreciated, which pay more attention to the quality of accounting information.Based on the above conclusions, there are some suggestions of further play the role ofindependent directors as: improving the financial background of the number of independentdirectors and the formulation selection mechanism of the financial independent directors.