Independent Directors’ Political Connections,Nature Of Property Right And Corporate Misconduct

Along with the development of China’s capital market,corporate misconducts are getting seriously worse while the fruitful results have been achieved.In recent years,there have been lots of researches on the influencing factors of corporate misconducts,but it mainly focuses on the structure of the board of directors or the environment of the system.Few scholars pay attention to the impact of political connections on misconducts,and there are extremely few researches on how independent director who possess the background of political connections has the influence on the corporate misconducts.With the continuous improvement of the independent director system,the position and the role of independent directors in enterprises are gradually improved.Therefore,it has theoretical and practical significance to study the influence of independent directors who possess the background of political connections of misconducts.This dissertation contains five parts.First of all,in the introduction,this dissertation introduces the background,ideas and methods of this research,and reviews pertinent literature on the economic consequence of political connections and the influencing factors of the corporate misconducts.In the second part,we define related concepts involved in this study and expound fundamental theories such as government intervention theory,institutional theory and independent director theory,etc.The third part overviews the current situation of irregularities in China’s enterprises,and then analyzes how independent directors’ political connections of listed companies affect the corporate misconducts.Basing on the analyzing,i put forward two research hypotheses.In the fourth part,this dissertation build a model in reference to related literature,and introduce the measurement of research variables involved.Using 13971 firm-year observations from A-share listed from 2008-2014 as sample,the hypothesis presented in this paper is empirically tested by using the regression method.The fifth part is the research conclusion and suggestion.The research find:(1)the independent directors with political background will reduce the misconducts.(2)the independent directors with political background exert stronger inhibition of misconducts in non-state owned enterprises.The research in this paper has both theoretical and practical significance.In theoretical sense,it can enrich the theoretical research on the economic consequences of political connections and the influencing factors of corporate misconducts by independent directors,and help scholars to deepen their understanding of the factors such as political connections and the effectiveness of the background of independent directors.From a practical point of view,to a certain extent,it provides useful help to Chinese supervisors in improving the supervisory strategy of corporate misconducts.