Characteristics Of The Independent Director System And Its Supervision And Performance Of Chinese Listed Companies Research

The independent director system has been imperatively carried into execution for four years since CSRC (China Securities Regulatory Commission) promulgated the Instructional Suggestions about Founding Independent Directors System in Listed Companies. The main purpose of introducing independent director system into listed companies in our country is offsetting the deficiency of Supervisory Commission and reinforce the inside intendance. The aim of this paper is seeing about if the independent director system had a discernible impact on the monitoring performance on dominative shareholder and other relevancies and how to improve the system through exploring the monitoring performance of the independent directors.Firstly, this article took samples from Chinese listed companies in Shanghai stock market. The date is from annual reports of these companies. It researches into characters of independent director system in Chinese listed companies form the aspects of independent directors' person-time, age, specialty and occupation backgrounds, composition percentage, reward, number of companies and time in charge. It makes completed comparison and contrasts with independent director system in the USA and UK. It derives the conclusion of junior achievements with problems and shortcomings to be improved.Secondly, it takes samples from Chinese listed companies and takes advantage of empirical research method to study the relationship between the system characters and monitoring performance of independent directors. It derives the conclusion that the independent director system didn't bring into play actions at the beginning. After 3 years' practice, its effects are relatively benign in so far as influencing the independent directors' monitoring performance. However, there are differences in independent directors' monitoring performance among different companies. Furthermore, the relationship between composition percentage and monitoring performance is significant positive. Both relative reward and age have significant negative relation with monitoring performance. Neither number of companies nor time in charge has significant relation with monitoring performance.Finally, the thesis brings forward countermeasures and suggestions on the basis of academic analysis and demonstrative conclusions of previous studies. Then the thesis winds up with the research limitations and prospects.