The Research On The Correlation Between Independent Directors And Tunneling Of Mgjor Shareholders

In recent years, the scandal of the major shareholders the hollowed listed companieshave been common."Monkey King case" from the early years, huge amounts of money,999group largest shareholder and its related parties$25billion the ST hops GuaranteeCircle Lian Hua Wei Jing arrears of major to recent years ST Kam into the largestshareholder and its affiliates provide huge amounts of guarantees to the brink ofbankruptcy, Peking University Science violation of its controlling shareholder the16lawsuit triggered by the huge amount of guarantee Xia n Cheng Mining500,000,000falsefor projects to be occupied by the largest shareholder shares fell stopped, and so, too manybig shareholders hollowed out negative information of listed companies flooded thefinancial news. Independent director system had been used as constraints and reduce themalignant behavior of the major shareholders of the "miracle drug" has been existence for11years in China’s listed companies, independent directors really played a role in checksand balances and reduce of large shareholders emptied behavior?In this paper, this is in order to solve this problem, and only then the independentdirectors and major shareholders the hollowed listed company behavior linked to research.Summarized the domestic and foreign literature and theory, first off, the problems of ourmajor shareholders the hollowed listed company, reason and independent director systemin our practice. As the basis of five independent directors characteristics as independentvariables selected occupied by the largest shareholder of listed companies funding leveland whether the use of the listed companies as loan guarantees as the dependent variable,after joining the control variables, the establishment of a logistic regression model, theempirical research.The paper concludes that: independent directors can play a role in the constraints andreduce the large shareholders emptied behavior. The number of served as an independentdirector of personnel in the professional quality (the number of independent directors withaccounting background), work attitude (independent directors personally participated in themeeting of the Board) and the exercise environment (the establishment of a number ofspecial committees of independent directors to participate) and other features whencompared to the Board this feature of the proportion of independent directors play a morevisible role.Finally, the three aspects to adjust the shareholding structure of listed companies, tostrengthen the effectiveness of the exercise of independent directors, and to strengthen theregulatory the hollowed behavior of large shareholders proposed rationalization proposals.