Research On The Effectiveness Of Independent Directors On Corporate Supervision

The emergence of the independent director system is mainly due to the failure of corporate governance,especially the failure of board supervision.The original purpose of establishing the independent director system is that under the situation of highly dispersed corporate equity,independent directors can supervise the management of listed companies on behalf of all shareholders,in order to reduce agency problems caused by opportunistic behavior of management.Today,the independent director system has become one of the core contents of domestic corporate governance construction.However,at home and abroad,even after the establishment of the independent director system,the interests of small and medium shareholders have been violated,and corporate risk management has gone out of control.This has led to a certain degree of doubt about the effectiveness of independent directors,both in the theoretical and practical circles,and the dispute over whether independent directors are really effective or just formal has never stopped.The research of any problem must select a proper and appropriate research perspective.The research on the effectiveness of independent directors is no exception,and the choice of research perspective cannot be separated from the functional positioning of independent directors.Supervision,strategy and political functions are the current mainstream opinions on the functional positioning of independent directors.Based on the current state of corporate governance of listed companies in China,an important purpose of establishing an independent director system in China is to expect independent directors to effectively reduce and curb corporate violations.This is also the focus that investors and regulators have been paying attention to,and it is also an important indicator of whether independent directors can effectively perform their supervisory functions.Itcan be said that the most important function of independent directors in China today is the supervision function.Does the independent director play a supervisory role on the company,thereby effectively preventing and suppressing the company's violations? If the current independent directors in China have not fully exerted their corresponding supervisory role,how should the next step be improved.How to give full play to the role of independent directors,get rid of mere formal supervision,make it really effective,and really exert its supervisory role on enterprises.These are the difficulties and priorities,as well as the issues that need to be further explored and resolved.This article will take a Chinese listed company as an example to analyze the theory and data in detail,and use statistical software to perform regression calculations to verify whether independent directors have played a supervisory role based on corporate violations.Whether corporate supervision is effective,and accordingly put forward suggestions to further improve the independent director system.First of all,the first chapter of this article mainly describes the research background,significance and purpose of the research topic,and the main content of the research.It provides a preliminary introduction to the independent director system and its role.At the same time,the first chapter mainly expounds the research framework and research methods of this paper.This thesis mainly adopts two research methods: theoretical research method and empirical research method.First of all,the theoretical research method mainly provides theoretical support for the topics to be studied in this paper through theoretical overview,so as to put forward the next hypothesis.Empirical research is one of the focuses of this article.Through regression analysis,whether independent directors have played a regulatory role in China and played a role in restraining corporate violations.The second chapter of this article mainly reviews the practice of independent directors in China.Lay a realistic foundation for further research on the effectiveness of independent director supervision.In addition,theliterature is reviewed,and the research status of China's independent director system is briefly summarized,laying a theoretical foundation for the next hypothesis and empirical research.The third chapter of this paper mainly summarizes and analyzes the theories of independent directors.It cuts in from the behavioral and personal characteristics of independent directors,and studies the impact and role of independent directors' participation in meeting the violation of corporate regulations,as well as the compensation of independent directors and the age of independent directors Regulatory role and put forward three research hypotheses in this paper.The main content of Chapter four is the empirical analysis on the effectiveness of independent directors' supervision of the company based on the three assumptions proposed,using the data of Chinese listed companies to study the effectiveness of the supervision of independent directors,and analyzing the empirical results.Most of the data used in the empirical analysis came from the CSMAR database,and the data was analyzed by SPSS software.The fifth chapter of this paper summarizes the research conclusions of the article.Based on the results of theoretical and empirical analysis,and integrating the actual situation of the operation of the independent director system in China,it points out that the current independent director system is inadequate,and accordingly proposes suggestions for improving and perfecting the independent director system.