Effectiveness Of Independent Director System Of Listed Companies

Independent director system is an important system design to solve the problem ofcorporate governance, in different corporate governance mode has a lot of attention. In thedispersed ownership structure in western countries, the agency problem betweenshareholders and managers is the root of problems in corporate governance； in China, thehighly concentrated ownership, the agency problem between small shareholders and largeshareholders are the root of problems in corporate governance. China’s listing Corporationshareholders usually have control of the company, can carry on effective supervision to themanagement, but as the largest shareholder in the internal person may encroach smallshareholder use own superiority interests. In the introduction of China’s mandatory systemof independent director, the functions and responsibilities are analyzed, its effectiveness isan important subject for research.In this paper, combined with the development of the independent director system,analyzes the concepts and characteristics of the independent director system, relatedresearch validity on the basis of our independent director system. To study theeffectiveness of a system, you first need to start to perform their functions, and gives thecorresponding responsibilities. According to the analysis of its responsibilities to how toevaluate its effectiveness, in the independent director system in China from the impact oncorporate performance, influence on management behavior, the protection of the interestsof investors and the external environment on the validity of independent director system；analyzes the influencing factors on the effectiveness of the effectiveness of the evaluationcontents. On the basis of theoretical analysis, through empirical research, during2009to2012in the financial industry listing Corporation as a sample, the independent directorsystem will play the validity of the test in our country in kind. Analysis of independentdirector system in our country’s development according to the results, finally puts forwardproposals for perfecting the system of independent directors.