Independent Directors Of Listed Companies On The Relationship Between Private Benefits Of Control

This paper summarizes the current system of domestic and international research status of independent directors, propose research on China's system of independent directors of listed companies from the perspective of shareholders private benefits of control. The purpose of implementation of independent director system is to protect the interests of shareholders of listed companies, especially small and medium shareholders. And there are two sources from which could harm minority stockholders profits, one source is from management immoral agent, so-called agent moral hazard, and the other is from big shareholders, the controlling shareholders occupying the interests of small and medium shareholders, so-called private benefits of control. I study China independent director system from this point of view that the large shareholder occupying minority shareholders.Firstly, in the theoretical analysis, the independent director system in China that a more comprehensive and complex concept, can be logically broken down into seven parts, including the function of independent directors, independence, choice of mechanisms, the scale of independent directors, independent directors members Proportion of independent directors remuneration, independent directors of the authority. In the empirical part of this seven-part will facilitate the quantitative analysis to extract three variables from the system as an independent director of quantitative analysis of the concept of variables. Then, introduce the concept of private benefits of control and measurement methods, and according to actual situation in our country, simplify the measurement approach some measuring methods, measuring the period 2006-2010 private benefits of control of listed companies in China, within a certain standard, 78 samples screened, and then empirical study relevance of their private benefits of control and system of independent directors of each variable, the final conclusion:the total amount salary of independent directors of listed companies and the company private benefits of control was significantly negatively correlated, while the total number of independent directors, the proportion of independent directors, was not found significantly related to private benefits of control, while in this paper I also find the total amount of assets of listed companies,the industries of companies also have some relevance with private benefits of control.