Independent Directors & Quality Of Accounting Information

With the increasing development of modern society and the capital market, modern companies has separated its property right and the governance power. For the problem of insider control, information asymmetry and the conflict between the equity of owners and managers, it is quite necessary to set up a restriction system, which can ensure the fulfillment of the managers' responsibility and owners' supervision on the managers, lower the cost of agency, solve the problem of agency and prevent the infidelity of the accounting information. Under such background, many countries adopt the Independent Directors System, which has gained some performance in the capital market of the western countries. This article mainly studies the relationship between Independent Directors and Quality of Accounting Information. Firstly, it illustrates the origination, development, independence of Independent Directors, as well as its performance in improving the quality of accounting information; Secondly, it analyzes the relationship between Independent Directors and Corporate Governance Structure, which indicates that Independent Directors can supervise the Corporate Governance Structure of the Corporation and optimize Corporate Governance Structure; Thirdly, it analyzes the relationship between Independent Directors and the internal control, which indicates that Independent Directors can optimize the environment of internal control and concludes that effective implementation of Independent Directors can ensure the quality of accounting information. Lastly it discusses the current limitation of Independent Directors, and then gives out the countermeasure of its development.