Research On The Effect Of Independent Director System To Listed Companies Capital Structure

Capital structure is a very important part in the corporate governance research. In simpleterms, capital structure is the proportion of equity and debt relations. Literature research at homeand abroad thinks that the optimal capital structure ratio is absolutely liability, which means thatthe proportion of debt in the capital structure can not be too low. But in our country, a universalproblem in the capital structure of listed companies is that the asset-liability ratio is too low,shareholders’ equity financing preference is too strong, this will directly lead to the capitalstructure of listed companies is not healthy. The main function of the independent director systemis the supervision and restraint, it is introduced to curb insider control at first, gradually, it alsoplayed a big role in solving the lack of checks and balances of equity and so on, but the lack ofchecks and balances of equity and insider control phenomenon has negative impact on the capitalstructure of listed companies, so this paper researches the effect of the independent director systemto capital structure through the two aspects of equity checks and balances and insider control.Hoping that through research of this article, it can be seen that how the independent directorsystem affects the capital structure of listed companies, to provide some new ideas for optimizingthe capital structure of listed companies.This paper carried on the qualitative analysis and the empirical analysis of how theindependent director system affects the capital structure of listed companies, including thefollowing content mainly:(1) The relevant literature at home and abroad are analyzed, on this basis, respectivelyexpounds the independent director and its characteristics, the concept of capital structure, andemphatically introducing the several relevant theories about independent director system andcapital structure,doing matting for the qualitative analysis of next chapter.(2) Under the guidance of relevant theories, analyzed the internal relation between theindependent director system and the capital structure optimization from the two perspective ofequity checks and balances and insider control in detail, and sums up effect of equity financing(debt) under the independent director system, this analysis of this part instructions that the lack of checks and balances of equity and insider control phenomenon all have adverse effect on thecapital structure, but the independent director system can improve the condition of the lack ofchecks and balances of equity and weaken insider control, has a certain positive influence on thecapital structure.(3) Under the support of qualitative analysis, the empirical part of this article, choose thesmall and medium-sized board listed company with the lower asset-liability ratio, which wouldmake the results of the analysis more significant, and the reason of selecting from the perspectiveof equity checks and balances for this part of the empirical is that this aspect of significance underinsider control is not obvious. This chapter studied the impact of the independent director systemon capital structure with equity checks and balances as intermediate variable, designing theinteractive variables in order to express the effect more accurate, shows that the impact of theindependent director system to capital structure after improving the plight of the lack of checksand balances of equity, and established the regression model firstly, and process the sample data,then carries on the regression analysis using statistical software, it can be seen that how theindependent director system affects capital structure under the perspective of equity the checks andbalances from the regression results.(4) On the basis of the qualitative and empirical analysis, on the basis of the influence of theindependent director system, this article puts forward some suggestions of optimizing capitalstructure of listed companies from the function of independent director itself, independence ofindependent directors and the implementation of independent director system.