The Empirical Study About Correlation Of Independent Director System And Earnings Quality In Listed Companies

The Independent Director System originated in the West. The Corporate Governance Structure introduction of Independent Director System,supervision and restraint of Management,the protection of small shareholders one of the most important force.earnings information as a means of users of accounting reports for listed company's financial position.The role of independent director system in which is to improve the quality of earnings.This paper mainly discusses the empirical study about correlation of Independent Director System and Accounting Earnings Quality in listed companies.The article is divided into four major sections:The first part is Introduction.It mainly introduces the background and significance of the study in this paper,including the basic ideas and methods of the study and study the main issues and a framework for entire article.This paper concerns three aspects of Independent Director:First, the independent director system in China how to play a role in the effect of to improve Earnings Quality in listed companies.Second, the correlation between the two is reflected in what areas? The third is how to improve the independent director system to improve the quality of earnings.The second part is mainly about theoretical analysis on the correlation of Independent Director System and Accounting Earnings Quality.This part analyses the effects to accounting earnings quality from earnings management under the Independent Director Systems.First,This part introduces an overview of independent directors;Second,the theories about the introduction of independent director system; thirdly, Independent directors benefits and cost analysis;Finally,Between Independent Director System and Earnings Quality correlation analysis.The third part is entering the core of this paper——the Empirical Analysis about Independent Director System and Earnings Information Quality in a listed company.This paper is primarily aimed at the sample of companies listed on China's The real estate industry.First of all,in terms of non-profit model,according to the opinions of represents of this model,the effect elements are the same in the specific industry,Then choose a representative indicator of the Earnings Management Earnings Aggressiveness and Earnings smoothness as Earnings Information Quality, and use these Earnings Quality indicators and characteristic variables of Independent Director System build a model.Eviews3.1 statistical software will analyze their relevance.The fourth part is the end of this paper.This part will analyze the empirical test results of measurement model.The analyses include correlation of explanatory variables in the model,descriptive statistics and correlation of explaining between variables and explanatory variables.From the results which come from Eviews3.1 statistical software,we can know that the proportion and the professional background of independent directors can improve the quality of earnings in listed company.But t he relative reward and the number of participate in meetings of independent directors have not been fully supported, but they affect the quality of the earnings.finally,According to this paper conclusions put forward proposals to improve the independent director system.Innovation of this study lies in using the degree of earnings management,Earnings Aggressiveness and Earnings smoothness as Earnings Quality, form the different aspects verify correlation between the independent director system and earnings quality in the real estate industry.