The Study On Relationship Between Independent Director System In China And Accounting Transparency

The independent director system was first produced in the United States.At that time in order to deal with the "insider" control problem,optimize corporate governance and improve management performance, U.S.companies midwiferied the independent director system. It was aimed at supervising and controling corporate governance to make the company's accounting information transparent through the independent director's independence and speciality. Owing to U.S.compannies' successful experience, the independent director system was introduced by the world. China also imported the independent director system. However, the effect was not as satisfactory as the U.S.model after introduction. Then, was there the relationship between the independent director system and transparency of accounting information?The thesis chooses the A-share listed companies in Shenzhen Stock Exchange as samples, takes the Earning Management and Fraudulent Financial Reporting as the explained variables,determines the independent director system character as the explaining variables and takes firm size, achievement, leverage and share structure as the control variables.Then, the thesis establishes the multi-element regression models which are used to conduct the empirical research on the influences of the independent director system on transparency of accounting information through multivariate linear regression analysis and Logistic regression analysis.The empirical results indicate that there is a negative relationship between the proportion of the independent directors and Earning Management, Fraudulent Financial Reporting. The factor of the reward of the independent directors can not influences on Earning Management and Fraudulent Financial Reporting.There is a negative relationship between the knowledge structure of the independent directors and Earning Management, Fraudulent Financial Reporting.