Research On Independent Director's Motivation Mechanism Of Chinese Listed Companies

The independent director's system was resulted from the English America legal system country. It cannot only solve the insider-controlled problems, make company's business decisions scientifically, but also prevent the big stockholders from controlling the company and maintaining the small shareholder's benefits. Since 1990s, the independent director's system has been introduced ,expecting to solve the problems such as the company controlled by the internal person, the lack of supervising mechanism and the small shareholder's benefit protection and so on .Studying the independent director's motivation mechanism has the vital significance on urging the independent assiduously to fulfill responsibility, maintaining the small shareholder's benefits, fairly supervising the managers, enhancing the independence of the board of directors, and making s company's management structure perfect.This article will utilize theoretical analysis technique and the empirical study and analyze present situations of independent director's motivation mechanism in Chinese Listed Companies. According to the development of social economic our country culture background and legal system, etc. Put forward the suggestion of improving the independent director's incentive mechanism of listed company of our country.Firstly, on the basis of general motivation theory, this article explains the contents of the motivation mechanism. Independent director's motivation mechanism is summarized more completely, including reputation mechanism, salary encourage, selective mechanism, ensuring competent rights, legal liability restraint, interests protection and market supervision.Secondly, the article analyzes emphatically the current situation of the independent director's incentive mechanism and existing problem. The reason why independent director cannot fully play a significant role lies in not setting up complete motivation mechanism at present.Thirdly, with regression analysis, its conclusion is that the allowance of non-independent director, the size of asset, will affect payment for independent director.Finally, this chapter, according to the main contents of the independent director's motivation mechanism and existing problems, is divided seven segments and offers the suggestion of improving pointedly.