| After more than 30 years of development,the scale of China’s capital market has been expanding and spillover,and the number of companies listed in Shanghai,Shenzhen and Hong Kong stocks is also increasing day by day.The healthy development of listed companies is inseparable from the active participation of independent directors.As a member of the company’s management,independent directors have played a key role in improving the corporate governance mechanism,improving the effectiveness of internal control and promoting the stable and healthy development of financial performance.In 2021,the Guangzhou intermediate people’s court made a huge compensation opinion on the independent directors jointly and severally liable in the financial fraud case of Kangmei pharmaceutical,which triggered extensive discussion on the ability of independent directors to perform their duties.With the promulgation of the new securities law,the amount of compensation for corporate fraud caused by ineffective performance of duties by independent directors is also gradually increasing.At the same time,with the wide opening of China’s high-speed railway,some independent directors are unable to work in the company’s office because of long distance and other reasons.Is it because of the increase of commuting time that the level of enterprise financial performance is low? Among them,what role does the effectiveness of internal control play?In order to analyze the relationship between independent directors,the effectiveness of internal control and corporate financial performance,this paper sorts out the working addresses of independent directors in the past five years from 2016 to 2020 through the annual reports of small and medium-sized board enterprises disclosed by Shanghai and Shenzhen stock exchanges and other website reports,and further verifies the relationship between independent directors working in different places and corporate financial performance in combination with the opening of high-speed railway The relationship between independent directors serving in different places and the effectiveness of internal control,and the intermediary transmission path of the effectiveness of internal control between them.The empirical results show that:(1)There is a significant negative correlation between the independent directors in different places and the level of enterprise financial performance,that is,the listed companies with a high proportion of independent directors in different places have a poor financial level;(2)Independent directors working in different places will inhibit the effectiveness of internal control to a certain extent;(3)The effectiveness of internal control plays a mediating role between independent directors in different places and enterprise financial performance.This study improves the relevant research results of enterprise financial performance to a certain extent,supplements the relevant literature on enterprise independent directors in different places,and provides a new perspective for some investors and government agencies to identify the level of enterprise financial performance-the commuting geographical characteristics of independent directors in different places,which shortens the decision-making time and cost of relevant personnel.Finally,the research results also provide a new reference for regulators to supervise the company’s independent directors,and provide a reference for standardizing the behavior of independent directors and improving the selection and employment system of independent directors in different places in China. |
