An Empirical Study On The Correlation Between China's Independent Director System Features And Corporate Performance

Independent director system comes from the United States. It was introduced in China as an innovative system for improving governance in the 1990s, and it has been a focus of academic research since its entrance in China. From the system's development history at home and abroad, there is no doubt that the government, regulators or even listed companies want to improve the efficiency of corporate governance and protect shareholders'benefits through strengthening the Board's independence and normative. However, the independent directors'function, in particular whether it is helpful for company's performance, remains to be discussed. But the system has been established in China's listed companies, so the most concerned issue is to study the correlation between independent director system and company's performance, as well as the factors which will influence the systems'features and its governance performance, etc. These studies obviously will be helpful for governments implementing and improving the independent director system.This paper chooses the independent director system features and performance relationship with the company as research content. According to China's listed corporate'latest data, through the methods of standardized research and empirical studies, this paper focuses on the China's independent director system features and the correlation between the system and the corporate performance and the impact of external environmental factors. Based on the existing problems of China's current independent directors of listed corporate implementation of the system, this paper specifically bring up some related countermeasures and suggestions to improving the system of independent directors.In order to achieve the purpose of the study papers, we opted for the combined research methods. By comparison, summarized, and other methods, independent director system with a modern corporate governance related theory, the introduction of independent director system in China's motive, the functions of our independent directors and the role of the independent director system affect the company's performance and impact on the internal mechanism of China's independent director system features a number of performance management and special environmental factors were analyzed and research. This research is the necessary theoretical analysis and foreshadowing for empirical study. Empirical research focus on the correlation between China's independent director system characteristics and corporate performance, and under different shareholding structure independent director system and the relevance of results, as well as the establishment of the independent director system different way of independent directors on the impact of performance management through a two-way method of testing. Finally, according to the problems discovered of theoretical analysis and empirical reality testing and analysis, in particular the validity of restrictions on independent directors to play the system, this paper specifically bring up some related countermeasures and suggestions to improving the system of independent directors.