The Empirical Research On The Efficiency Of Independent Directors

The system of independent director was introduced into Chinese companies as an important measure to improve corporate governance and protect the benefits of investor. Accordingly, people pay more atention to its efficiency. Because of these reasons, the paper is trying to make the positive research on the efficiency of the independent director system in the Chinese listed companies. Furthermore, I explained the empirica results according to the research combining the facts of Chinese special environment of corporate governance so that it offered the experienced evidence and theory support to the reform of corporate governance in our country.In theories study part, I carried the economics analysis on the usefulness of the independent director. First I analyzes the macro and micro bachgroud to lead independent director into the institutional in our country. I thinks that independent director's system is a kind of system change under the condition that the corporate governance structure was serious. Secondly I analyzed the essence of independent director's function according to the theories of "stakeholders school", thinking under the premise of independence of the independent directors, independent director's system is a way that the stakeholders share control power of the company. Therefore independent director should position in the basic function of inspect and should look after the strategic function at the same time in the listed company of our country.The paper set up the evaluation system of the independent director from two aspects, namely whether the listed company guaranteeed the right and function of the independent director or not and whether the independent director earnestly, independent, efficiently implement the the job availably or not, including the performance evaluation system and the implement evaluation system of the independent director in listed company. The evaluation system mainly include:①the evaluation corpus(the listed company, the small shareholders, government sections, independent directors, self-discipline organization of independent director such as independent director's association;②the evaluation index sign(first, second, third index sign);③the evaluation method( misty comprehensive evaluation method, layer analysis method). The paper also showed the concrete usage of evaluation method through actual example.I had gathered the annual report of 1312 listed companies in 2004 in whole country, analyzing the basic characteristic of the independent director and the institutional movement mechanism circumstance of the independent directors of listed companies in detail. I carried on the questionnaire to 600 independent directors of listed company of our country and according to the result analyzed the implement result in improving management of company structure. The result shows the total performance of independent director's system of listed company was good and the personnels have appointed and the mechanism frame have established. Implement of independent director have important function on perfecting corporate governance structure and promoting norm operation and protecting the shareholder benefit.The paper put forward the theories assumption and set up the non-line model and square distance set, aslo carrying on the empirica analysis on efficiency of independent director. The paper discovered the positive relationship beteen independent director's salary and corporate performance, then index signs of corporate performance increase when the independent board director salary improve; The positive relationship exists beteen the profession or politic background and corporate performance. From the description data, the listed companies seem to forvorite the well-known persons who have profession and political background as independent director. The relationship beteen the independent director's comparison and corporate performance is not obvious with which there is certain distance beteen the hope of the people. It also showed that it is necessary to perfect the independent director's system.Finally, I put forward countmeasure and suggestion according to the theories and empirica study, including movement environment and mechanism of independent director.