The Research On The Supervision Of Independent Directors Which Is Basing The Corporate Performance

With the deeper of equity division reform, the function of stock market will change fundamentally,so lead to the of governance Structure in our country,have the phenomena such as"dominant shareholder","same stock but different price and power","insider control"changed? Has the independent director system which is a part of corporate governance become a mere formality or changed its supervisory effect? It is worth thinking deeply that how to perfect the independent director system to adapt to the new situations of equity division reform.This paper selects listed companies in Shanghai and Shenzhen Stock Exchange which have fulfilled equity division reform from 2006 to 2008, and eliminates the companies which are special treatment or haven't fully disclosed board condition or have exceptional ROE, and finally selects companies without the eliminated companies as examples to make empirical research.Firstly, this paper is based on the background of equity division reform which has caused great changes in domestic capital market so as to induce changes in internal corporate governance mechanism. So the independent director system which is an important part of corporate governance mechanism gets a new beginning, which makes this paper meaningful.Secondly, this paper reviews the research on the relationship between independent director and company performance from three aspects which are independent director system, supervisory system, operation and indemnify. Based on these, it combines the definition of former research, and reinterprets supervision of independent director from four aspects such as scale, capability, aspiration and surroundings.Thirdly, this paper proposes the hypotheses which are based on the analysis of supervisory system of independent director, and does research on the relationship between supervision of independent director and company performance by factor analysis and stepwise regression. After that, it sorts order by the impact the supervision of independent director makes on company performance with path analysis. The conclusion shows that surrounding makes the biggest effect on supervision, and independent director with accounting knowledge background could play its role in a larger extent, and middle level subsidiary is not beneficial to make independent director carry on its responsibility of supervision.Ultimately, this paper points out the problems of supervision of independent director, and refers advice for it from four aspects, such as perfecting the operation environment, promoting the professional construction, making up uniform remuneration standards and establishing and perfecting reputation mechanism.The innovation of this paper is that it takes equity division reform as entry point, does research on the relationship between supervision of independent director and company performance by factor analysis and stepwise regression, and sorts order by the impact the supervision of independent director makes on company performance with path analysis, and refers meaningful advice. Wish this could provide inspiration for the perfect of independent director system.