Theoretical And Empirical Research On The Relationship Between Independent Director System And Corporate Performance In Chinese Listed Companies

In the late 1990's, independent director system had been established in world countries. Some listed companies in China also engaged independent directors in 2001. Core of independent director system lies in perfecting corporate governance and ensure scientific decision-making. Corporate performance can reflect effectively whether the independent director system is healthy or not. It has been just five years since independent director system is established in china, but its supporting mechanism and operation environment are still not perfect. It isn't effective in improving corporate governance structure as to promote corporate performance. This paper selects the relationship between independent director system and corporate performance as a topic, which shows theoretical and practical value.This paper consists of the following four chapters:Chapter 1 is an introduction. First, the background and purpose are analyzed; then the concept on independent director system is distinguished. Third, both domestic and foreign actuality is analyzed about the relationship between independent director system and corporate performance. At last, the study route, study means and study content are presented.Chapter 2 presents the theory of the independent director system and corporate performance. The first is several aspects of the theory about the independent director system. And the second is the evaluate method of corporate performance. At last, the relationship between independent director system and corporate performance is introduced.Chapter 3 analyses of the status after listed companies established independent director system. And the first is how many listed companies established independent director system and the proportion of independent directors in listed companies. The second is occupational background of independent directors. Then the Personal characteristics of independent directors are analyzed. At last whether independent directors pluralizes or not and the salary of independent directors is analyzed.Chapter 4 makes an empirical study on the relationship between independent director system and corporate performance of our country's listed companies. The thesis is mainly developed based on independent directors whether improves the corporate performance since the listed company established independent director system in 2001. The empirical study consists of four parts: (1) whether their performance shows different between the listed companies who establish independent director system voluntarily or non-voluntarily; (2) the relationship between companies with independent director system or without; (3) the relationship between board structure and corporate performance; (4) the relationship between personal characteristics and corporate performance. Due to the study, such conclusions are presented: (1) the performance is better in the listed companies who establish independent director system voluntarily. (2) The performance is better in the listed companies with independent director system than that without, but the listed companies' performance improves little after they introduce independent director system. (3) The percentage of independent directors has negative influence on corporate performance; the number and personal characteristics (age, degree and prefecture) of independent directors have no influence on corporate performance.