Independent Directors And The Management Of Surplus

The independent director's system has been set up for about ten years. People from enterprises and academic have been paying close attention to its validity. At present, the domestic study on the independent director's system, which involves fundamental research, and empirical study is already very thorough. Meanwhile, the research about the independent director's system focuses on the relationship of the independent directors and the corporation achievement. Whereas, the research on the validity of independent director's system in terms of earnings management is rare, and the comparative analysis between the state-owned and private-controlled listed companies is almost null.Therefore, this paper makes a research on the validity of independent director's system in terms of earnings management and the comparative analysis. We detail the research to three questions: firstly, the validity in terms of earnings management; secondly, the comparative analysis on the earning management between the state-owned and private-controlled listed companies; thirdly, the difference of the operation of the independent director's between the two kinds of corporations.To investigate the questions, we regard 1405 listed companies as samples and use statistical method.