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Institutional Analysis Of The Independent Directors Of State-owned Listed Companies

Posted on:2003-02-09Degree:MasterType:Thesis
Country:ChinaCandidate:G X ZhangFull Text:PDF
GTID:2206360062995086Subject:Political economy
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In 2001 , China Securities Regulatory Commission (CSRC) laid down that the board of the listed companies should have positions for independent director(ID). Before that, some listed companies had done so according to the international standard. But in view of the present state, ID has not achieved what people anticipated. This paper starts from the role and redefinition of ID, and then goes on to analyze the institutional factors that affect the utility of ID in China. It closes by introducing a series of institution-arrangements in order to improve the performance of ID.Corporate governance has developed from unilateral governance that based on capitalist to co-governance that based on the stakeholder theory. As a way to perfect the corporate governance structure of listed companies, the ID should change the function from benefiting shareholders to the whole stakeholders. The function of ID which should be embodied in the definition of it should transit from balancing the powers to helping the board make the decision scientifically, and the ID should be independent to the whole stakeholders.The stock right structure of our country has influence on the utility of ID . But concentrated stock right structure itself hasn't determinant influence on the utility of ID. The key is to change the engendering mechanism of ID. Corporate governance structure can be divided into two models : the first is single layer model which be favored by England , American and so on ; the second is double layers model which is adopted by Germany , Japan and so on . The influence of different model on utility of ID mainly manifest on conflict of two supervising mechanisms . In addition, encourage mechanism also restrained the utility of ID .In order to evade the influence of the special stock right structure on the utility of ID , we should adopt the scheme in which Independent Directors Firm rather than shareholders recommend ID, and enhance the scale of the ID . The Independent Directors Firm should be managed by CSRC and Independent Directors Association. Besides, we should authorize the ID to fire the managers. The listed companies should act on their own on the independent directors institution .
Keywords/Search Tags:Institutional
PDF Full Text Request
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