Positive Research On Independent Director's System And Earnings Management Of Our Country

Our country has set up independent director's system for more than six years. People have been paying close attention to its validity all the time. At present, the domestic study on independent director's system mainly concentrates on theory analysis. There is only a small amount of evidence research on dependence of the independent director and company's achievement. But it cannot prove the independent director's system is invalid that independent director's system and company's achievement are independent or even negative dependent. Perhaps, it is the independent director's supervision function that makes company's achievement reflects the real state of the company accurately.This paper makes a research on the validity of independent director's system in terms of earnings management. We regard 707 listed companies as samples and use statistical method to investigate the validity of independent director's system. We draw following conclusions: the rate of four types of independent director has not influenced the company's earnings management; the salary level of independent directors has direct ratio with the company's earnings management, give more salary to independent directors can not let them be more effective and useful, by contraries, it will make independent directors lose their independence. The supervisory degree of independent directors also has not influenced the company's earnings management. The research on the validity of independent director's system in terms of earnings management enriched the study on independent director's system.To improve independent director's system in our country , there is still a long way for us to go. Through profound thinking, we try to table proposals in terms of independent director's system itself, prompting and inhibiting system, executive system and external environment.