The Research Of Correlation Between Characteristics Of Independent Directors And Corporate Performance

Independent directors first originated in the United States. As a system innovation, this could perfect the governance structure of company, whereas it also had been widely applied in the company all over the world. Last century, it was transplanted to China, becoming the focus of academic research. With the passage of time, China’s independent director system of listed companies has been implemented for more than10years, the operation effect? And whether it is conducive to improving the performance of listed companies? With the gradual popularity of independent director system in our country today, we still have a need for in-depth consideration of these issues, to explore the scientific and rationality. At the same time it also helps to related departments to optimize the system of independent directors and improved.Private enterprise is gradually becoming an important force in promoting China’s economic development and social progress, due to structural deficiencies in governance, the rights of minority shareholders of private enterprises is difficult to guarantee, which had a serious effect on the operation of private enterprise development. How to play the corporate governance efficiency effectively, to protect the interests of all shareholders and guarantee sustainable development of enterprises, in particular the development of private enterprise, which become a pressing issue.The paper selects a private listed company independent director system and the relationship between its operating performance as a research, comprehensive system understanding and analysis of the current characteristics of Chinese private listed company independent director, analysis the characteristics of independent director in China and the relationship between private enterprises and its impact on the performance of private enterprises. In order to achieve the research purpose of the paper, this article selects research method of combining theory and empirical research. On one side, it analyzes and researches the relevant theory of the independent director system, the functions of the independent directors, the definition of private enterprises, the necessity of introducing independent directors and the system of independent directors of private enterprise mechanism, so as to later make the necessary theoretical analysis and empirical research on bedding. On the other side, through the relation between characteristics of China’s independent director and private enterprise performance to make an empirical test. Finally, based on the theoretical analysis and empirical test to make policy proposals to perfect the independent director system.This paper’s empirical results show that the characteristics of Chinese private listed company independent Director and corporate performance with a certain degree of correlation. In terms of quantitative characteristics of independent directors, the proportion of independent directors and firm performance:there is no significant correlation; Mandate of the independent directors and firm performance:an inverted u-shaped relation about independent directors’term "degree" problem; Performance-related remuneration of the independent directors and companies, this is different from most of the relevant research findings about private enterprise independent Director salary and unable to motivate oversight functions of independent directors play, but had a negative impact on the independence of independent directors. In terms of quality characteristics of independent directors, independent directors of professional background, educational level, age and company performance is positive correlation; female proportion of independent directors and firm performance negative correlation. Behavior characteristics of independent directors, independent directors participate in the meeting and the number of part-time jobs are associated with the performance of the company is. Through the study of private listed companies, this article expands independent directors and firm performance:literature, particularly in the emerging markets is similar to the China private listed company independent director system in design of some reference value, provide reference for selection of independent directors of listed companies and drawing on empirical evidence.