Research On The Impact Of BYD’s Foreign Independent Directors On Company Performance

The absence of corporate governance mechanism and related legal policies make the independent directors of Chinese listed companies play the roles of "formal directors" and "vase directors" for a long time.Since the Eighth National Congress of the CPC,with the implementation of the "Belt and Road" construction and the strategy of going out,the internationalization of the board of directors has attracted the attention of experts and scholars.Since 2014,a large number of Chinese companies have introduced foreigners to their boards and set up international boards.Internationalization of the Board of Directors,foreign directors,and so on has become a research hotspot.However,the existing literature mainly focuses on the study of foreign directors on the performance of M & A,dividend distribution,organizational legitimacy and so on.Few people touch and pay attention to the impact of foreign independent directors on corporate performance and the way to achieve it.An in-depth study of this aspect will help us to better understand and distinguish the economic consequences of foreign directors and foreign independent directors in the International Board of directors,and broaden the understanding of the academic circles to the background characteristics of independent directors.Based on the above-mentioned Subject Logic,this paper discusses the mechanism of the introduction of foreign independent directors to corporate performance from the perspective of foreign independent directors.Through collecting the sample data of a-share listed companies from 2014 to 2018 and using stata16.0 software,we find that the introduction of foreign independent directors has a positive direct effect on the improvement of corporate performance.On the basis of empirical research,this paper selects byd group as a case study to explore the role of foreign independent directors on corporate governance and its impact path through theoretical and empirical analysis.This paper hopes that the conclusions drawn on this basis can lay a foundation for the standardization of independent director system and the construction of International Board of directors.