| In order to improve the corporate governance structure, accelerate the standardized operation of listed companies, China Securities Regulatory Commission introduced formally the independent director system in listed companies. However, with academia and regulatory authorities discussing to deepen and improve the system of independent directors increasingly heated, independent directors of the groups began to show a different kind of behavioral tendencies, resigned from the listed companies, the number of such independent directors showing a rapid growth trends, and most of the independent directors choose to resign in advance, I think the abnormal resignation of independent directors is likely to be preamble signal of corporate governance deficiencies. In this paper the resignation of independent directors in advance as the starting point, searching on the correlation of Independent Directors to resign in advance and corporate governance deficiencies, helping to regulate the governance structure of listed companies, so that investors can properly judge the situation by investment management companies.In this paper, the 2011-2013 Shanghai and Shenzhen main board listed company independent director resignation as sample data, select the restatement of financial irregularities and corporate governance as a proxy for defects, by comparing with that when the listed companies occurred normal resignation of independent directors or independent directors to resign in advance,the probability of financial restatement and irregularities in next year in the listed companies,to verify that between the abnormal resignation of independent directors and corporate governance defects whether there is correlation or not. By hypothesis, collecting data, building Logistic regression model, then get conclusion. The study found: the occurrence of independent directors to resign in advance of the listed companies compared to the occurrence of normal resignation of independent directors of listed companies, the probability of financial restatements and irregularities should be large in next year. The results show that the independent directors of the Company resigned in advance indicates that there are serious management deficiencies. This article is not only to establish an independent director retroactive punishment mechanism for regulators to provide a theoretical and empirical support,and provide a new cognitive effectiveness for independent director system that has long been controversial academics. |
