The Impact Of Financial Independent Director's Demographic Characteristics On The Stock Price Crash Risk

Independent director is an important part of modern corporate governance mechanism design.Due to the age and gender differences of independent directors of listed companies,the effects of their governance are also different.The occurrence of the stock price crash is partly attributable to principal-agent problem and information asymmetry.And the existing research also shows that financial background independent directors can effectively improve the quality of accounting information and restrain the behavior of earnings management.Does the demographic characteristics,such as age and gender,have impacts on the suppression of the stock price crash?When the geo graphical position of independent directors is different,how does the age and gender affect the risk of stock price crash?So this paper selects 2007-2015 years' A share listed companies with only one financial background independent directors as samples,and makes an empirical study on the relationship between independent directors' age,gender and stock price crash.Firstly,the literature review is made in this field,including the literature review of the characteristics of independent directors and the effect of governance,the factors of the stock price crash,the board of directors and information on stock prices.Secondly,this paper chooses the principal-agent theory,the information asymmetry theory and the upper echelons perspective as the theoretical basis of the full text.Thirdly,through the analysis of the theory and research literature,4 hypotheses are put forward.Finally,the following conclusions are drawn through descriptive statistical analysis,correlation analysis,regression test and robustness test:(1)The older the financial independent directors are,the more effective it can restrain the occurrence of the stock price crash.The more experience are,the more effective it is to the decision making,the quality of accounting and the disclosure of information.After considering the geographical location,we find that the age advantage of the independent director can not be brought into play in the case of local tenure.However,the longer the age of the nonlocal independent director is,the more likely it will inhibit the crash of share price.(2)Female financial independent directors have a certain negative impact on the fluctuation rate of stock price.Because women financial independent directors can promote the communication among the members of the directors to some extent,alleviate information asymmetry,avoid investment and financing risks,improve the efficiency of the board of directors,and effectively prevent the extreme consequences of the stock price crash.After considering the geographical location,we find that the female financial independent directors' role in the stock price crash is more significant under the local tenure.It means that the local employment of female financial independent directors is beneficial to ensure their efforts to perform their duties,improve the quality of corporate governance and reduce the stock price crash risk.This paper has deepened the understanding of the effect of independent director governance,supplemented the influencing factors of the risk of stock price crash risk,and provided a reference for the establishment of effective and diversified independent directors of the listed companies.