An Empirical Study On The Relationship Between Independent Director System And The Illegal Accounting Information Disclosure Of Listed Companies

This paper focuses on the relationship between independent director system and the illegal accounting information disclosure of listed companies.Based on the review of the relating research literature about this topic, this paper analyzes the relationship between independent director system and the illegal accounting information disclosure of listed companies by the way of positive methodoligy .In the process of empirical research ,I select the samples of the A share listed companies released their financial reports in Shanghai Stock Exchange and Shenzhen Stock Exchange from 2002 to 2006 to do the empirical research.. This paper examiness the relationship between independent director system and the illegal accounting information disclosure of listed companies from five aspects:proportion of independent director ;audit committee ; annual compensation of independent director ; number of times independent director participated in the board of directors meeting ; knowledge structure of independent director. Through empirical study ,this paper tested which characteristics of the independent system have significant effect on the illegal accounting information disclosure,as well as which do not .The results show that audit committee and proportion of independent director with accounting knowledge have significant negative correlation with illegal accounting information disclosure, and other characteristics have not significant correlation with illegal accounting information disclosure .Finally ,based on the conclusions mensioned above ,this paper brings forward the policy suggestion how to improve the independent director system and how to increase the quality of accounting information disclosure of listed companies.