The Empirical Research On Relationship Of Independent Director System And The Non-standard Audit Opinion

On August 16th 2001, the China Securities Regulatory Commission promulgated《The guidance opinions about the listed companies establish the independent director characters in China》, marking the independent director system in China formally established. Seting up an independent director system was the purposes of independent directors to play the role of independent and objective judgement, maintain the company's overall interests, protect the legitimate rights and interests of small shareholders not be harmed. However, in recent years, some listed companies' accounting information has been seriously distorted, the earnings management phenomenon is very serious,the example of major shareholders and managers infring the interests of the small and medium-sized shareholders occured from time to time. Independent directors of listed companies is an important part of internal governance structure, the audit is the sound governance of listed companies outside of the effective means of auditors issued an audit opinion on the legality of the accounting statements, to provide reasonable assurance of fairness, both have the effects on the disclosing account informations of the public companies. So that,studing the effect mechanism of independent director system to non-standard audit opinion and give reasonable evaluation to the independent director system's effects in China, which made the great significance on providing empirical evidence and theoretical support to the corporate governance of listed companies.This paper from audit opinion taking both theoretical analysis and empirical test to the independent directors.Taking the dates from 2001-2007 of 1129 A-share listed cimpany as simple.Selecting the proportion of independent directors, independent directors annual salary, the number of independent directors to participate the meeting, whether or not the listed companies establish board of auditors, the educational background of independent directors, the consistency of the independent directors and listed companies' working place to build consistency as variables, and take the type of audit opinion from certified public accountants as the dependent variable to construct model,using Logistic regression analysis empirically test all factors of the system of independent directors of China's listed companies, which have been issued to the non-standard audit opinion.Coming to the conclusion that: the independent director system and the non-standard audit opinions have certain correlations, before and after the establishment of independent directors, the types of audit opinion are significantly different.The probability of the listed companie which built a independent directors received an unqualified audit opinion on standards is much higher than the non-establishing independent directors'company.The proportion of independent directors,whether or not the listed companies established board of Auditors,the educational background of independent directors and so on, all significantly affect the audit opinion issuing. The independent director system in China has played a certain role ,which on improving our listed companies' corporate governance, on improving the selection mechanism accounting firms , on cleanning up the audit market, on improving the quality of accounting information, on making listed companies to obtain more real,fair standard audit opinion,and takes its contributions.From the perspective of Audit opinion to study the impaction of independent directors on corporate governance system, enriched the studise of the system of independent directors.Only to improve the independent directors system itself, promoting listed corporate governance structure reforms actively, improving the listed companies' internal and external oversight mechanisms, the independent director system in China can play an active role.