Environmental Uncertainty, Independent Director And Corporate Performance

In recent years,corporate governance issues have gradually gained attention in China.Among them,in order to meet the development needs of Chinese enterprises and regulate the operation of listed companies,the independent director system was introduced to China in 2001.So far,the independent director system has been developed in China for nearly two decades.China's listed companies now have a situation that one share dominates exclusively.It might cause mere consideration of majority shareholders and harm in interests of minority shareholders.Thus,it poses certain risks.Some of these situations stem from the lack of regulatory mechanisms or dereliction of duty.They also raise questions about small and medium-sized investors' doubts about listed companies,and thus highlight the question of whether independent directors play a role.As a branch of the corporate governance structure,independent directors are indispensable and important components.Their main purpose is to improve the functions of the board of directors,strengthen the supervision of listed companies,and reduce the agency between the two classes and protect the interests of shareholders.This paper takes the selection of all the A-share listed companies in Shanghai in 2016 as the empirical research sample.First is the descriptive statistical analysis of dependent,independent and control variables,and then the correlation analysis,and then multiple linear regression analysis is carried out,finally a robust test is made to verify the empirical results.The main conclusions obtained include:(1)The proportion of independent directors has a significant impact on corporate performance.When Tobin's Q value is used as a measure of the explanatory variables,there is a significant positive correlation between these two.The independence of independent directors of listed companies has research value,and the right to plays a certain role and can improve corporate performance.(2)The financial background of independent directors has a significant impact on corporate performance.Independent directors have professional value,and as an advisory role,they play a role in corporate performance.(3)The remuneration of independent directors has a positive and significant impact on corporate performance.The remuneration system of independent directors is thus proved.(4)Environmental uncertainty weakens the positive correlation between independent directors' compensation and corporate performance.The innovations of this paper include the following three aspects: First,the discussion on the functional roles of independent directors has increased in recent years,but most of the literature is based on the system of independent directors,and there are few studies on its supervisory function and consulting function.This paper is a novel study of independent directors from the perspective of functional roles.Second,there are many studies on the performance of independent directors and companies at home and abroad,but there has been no conclusion and it is worth discussing.From the role perspective,this paper is very meaningful to enrich the research conclusions of independent directors and corporate performance.Third,the external environment of Chinese companies has changed a lot,so it is in line with current trends to incorporate environmental uncertainty into research.And this study explores the relationship between independent directors and firm performance by using environmental uncertainty as a regulatory variable,which is an innovation.