The Study On The Relationship Between Independent Director System And Enterprise Performance

The ownership of many companies is decentralized, and the board is the agent of dispersed ownership, so it became the core of company governance. But the bribery of the board directors make people distrusts them. In order to prevent internal control of controlling shareholders and management layer, damage to the overall interests of the company, the independent directors system is introduced to the corporate governance mechanism. And over a period of time, the independent directors system in the world is widely adopted.When Private enterprises are in the process of reforming enterprise system, it is necessary to perfect corporate governance structure, construct the rational power balance mechanism, realize the improving of the company's performance. When ownership and management right is separated, the power of the actual managers gets amplified, following by insider control, management corruption, even for the threat of corporate ownership. It will cause the company's operation risk constantly increasing. Finally the reason for enterprise performance decline is not the external pressure of competition, but the internal management issue. It will create positive influence for private companies' healthy development and internal system consummation and more standard operation procedures by introducing independent director system. The private enterprises have become the subject of national economy; improving independent director system has a great promoting effect for the healthy development of the private enterprise.