Do The Independent Director Supervise?

Independent director system originated from the common law countries, was originally set up to solve the listing Corporation which is produced by the principal-agent problem of "insider control" and "large shareholders expropriate the interests of small shareholders", standardize operation of the listing Corporation, prevent a series of problems such as the accounting fraud and other irregularities, false, improve accounting information quality, further improve the corporate governance structure. Since2001, China introduces the independent director system, the original intention as well as the final goal of the independent director system, it is to play a more supervisory role. However, we will find that, in recent years, a curtain of accounting fraud, fraud cases are still be visible before the eyes, then,, whether the independent director system can effectively play a supervisory role, help to improve the quality of accounting information?Based on the research of scholars at home and abroad, to the quality of accounting information as the angle of view, to explore the role of the independent director supervision. For the supervision capacity of independent directors, the effective dimension, capacity dimension, incentive dimension and environmental dimension to measure. And using information disclosure quality as an alternative variable for the information quality of accounting. Using the2007-2011motherboard Shenzhen A shares of listing Corporation for the data, The result showed that, the independent directors proportion of dissent is helpful to improve the quality of accounting information, also found that, with the legal professional higher ability, provide moderate levels of compensation is higher can promote effective independent directors play a supervisory role; but we found no evidence of a correlation between the ability of accounting professional, the number of part-time, their environment and the independent directors proportion of dissent. The above results indicate that the effect of independent director system, the implementation is not accord with the introduction of the original intention, for us, is still a long way to go.