The Correlation Anlalysis Between High Level Of Independent Directors’ Remuneration And Earnings Management、Related Party Transaction

Independent directors play an increasingly important role in now China’s corporategovernance. For example,acquisitions, related party transactions, changing accounting firms andother issues can be effective after independent directors sign an opinion. China SecuritiesRegulatory Commission set that the listed companies shoud pay an appropriate remuneration tothe independent directors,but it does not provide a specific standard.The amount of theremuneration can be agreed by independent directors and the listed companies. The paperprepare to study the correlation between high level of independent directors’ remuneration andearnings management, related party transactions. So it reveals the problem of high level ofindependent directors’ remuneration.The paper use empirical research methods and combine the practices of independentdirectors’ remuneration. to do theoretical analysis and empirical research.This paper try toillustrate the correlation between high level of independent directors’ remuneration and earningsmanagement, related party transactions.from empirical perspective. It slect A-share ListedCompanies’ data as samples during year2006to2009.and set up model to study the correlationbetween high level of independent directors’ remuneration and earnings management, relatedparty transactions and do descriptive statistics and empirical research. The conclusions are thefollowing:(1) The high level of independent directors’ remuneration payment has a positivecorrelation with the degree of earnings management;(2)The high level of independent directors’ remuneration payment has a positivecorrelation with the degree of related party transactionsFinally, the paper presents some policy recommendations. It can help the securitiesregulatory authorities to strengthen the supervision of the capital market and promote corporategovernance of listed companies...