The Research On The Independence Of Independent Directors In The Listed Companies

As to the independent director system, independence is its core and soul. The independence means that there must be no relations between independent directors and big shareholders or company operators, which may hinder independent director doing their works. And the independence also means that independent directors can catch commercial incident essence and dare to express their own view. This research divides the independent directors' independence into introductory independence and operating independence. According to this, the main views of this thesis can be described as:First of all, we can draw six conclusions from the independent directors' positive study: 1. Universities' teachers and scientific experts are main part of the independent directors. 2. The famous universities in Beijing, Shanghai, Shenzhen and Guangzhou are the collective source places of the independent directors; 3. The independent directors have a well education and a high professional title; 4. Most of the independent directors are major in economic management; 5. The independent directors' remuneration has a little effect on independence at the present stage; 6. The independent directors' proportion in boards is relatively low. The current composition embodies the following defects: insufficiency of business experiences, insufficiency of attendance, insufficiency of independence and insufficiency of diversification, which affect the operating independency. The main reasons are that there is not a fully developed managers' market, the listed companies weaken the independent directors' functions, the university teachers with special knowledge are suitable consultants and that there is effect of the peculiar interpersonal relationships.Secondly, on the basis of positive study, we analyses the influent factors of the independence. The decision-maker is a primary factor, which determines the independent director and whom they are responsible for. The changing state of enterprise's ownership requires the independent directors to serve the stakeholders. The independent directors' personal characteristics are basic element for them to work, and deep affect the operating independence. Since there is lack of ripe motivation and commitment mechanism, the independent directors are not willing to work hard. On above-mentioned analysis we tries to set up an analysis frame of the influent factors.Finally, on above-mentioned analysis, the thesis puts forward some suggestions to strengthen the independence. 1. Build the independent directors' association and nominating committee to guarantee an independently choosing mechanism. 2. It isnecessary to choose the independent directors, who possess the following sevencharacteristics--incisive thinker, business experience, interpersonal skills, effectivecontribution, commitment, independence, command attention and respect, to maintain the operating independence. 3. Reputation mechanism is a low cost and effective method, but the building of the reputation mechanism is a long-term course and needs the supplementary measures in many aspects. 4. In order to give independent directors enough economic motivation in proper way, we should reform the existing remuneration way. And it is an effective way to let the independent directors bear civil compensation responsibility.