Study On The Effect Of Background And Incentive Of Independent Directors On The Corporate Governance

As a new corporate governance initiatives into listed companies,the purpose ofindependent director system is to solve it has established in the separation ofownership and control of the situation of listed companies "insider control" problem,and then improve the corporate governance mechanism.China has introduced theindependent director system for more than ten years,whether the independent directorsystem has played the effect of corporate governance,improve the corporategovernance structure has become a universal attention hot topic.At present,theacademic community has done a lot of research on the implementation effect ofindependent director system, mainly concentrated on two aspects:The first is whetherthe independent director system has played the governance effect?The second is whatthe main factors that influence the governance effect of independent director system?These studies have achieved beneficial conclusions, but thereare also some limitations,mainly displays in:①No thesises research the Impact of independent directors oncorporate governance combine the personal background with incentives;②Ignore thedifferences between regions of the independent director affect implementation of thesystem.Based on the supervision and consulting functions of independent director, thispaper builds the analysis of independent director’s function framework,for the firsttime,combines the background of independent directors, incentive and comprehensiveinvestigation on the effect of independent director governance to regional differences.This paper uses the data of guangxi listed companies from2008to2012,followscertain principles on the basis of the choice at the same time,develops eastern regionof guangdong as the matching sample of listed companies,determines the empiricalresearch of the independent variable and dependent variable through the maindifferences between the regional background of independent directors.Independentdirectors’ professional background and compensation as the research of the independ-ent variable,the earnings information quality of listed companies as the measuredvariables,the independent director supervision effect on operating performance oflisted companies as the independent directors, counseling effect of measured variables,the board of directors of the empirically the background,motivation effect ofindependent director governance,and on this basis, this paper discusses the regionaldifferences of constraints and restrictions of independent director’s role played.First,independent directors’ background play role in their Supervision effect, regional differences have constraint and limits in the independent director supervisioneffect.From the regression results that financial background of the independentdirectors to the return of the earnings information quality of listed companies in twoareas,guangxi financial background of independent directors on the earningsinformation quality of listed companies has played a good supervision effect. Thebackground of independent directors in the matching companies didn’t have the effectof corresponding;Second,the independent director of counseling effect affected by thebackground of independent directors,regional differences consulting effect of theindependent directors play generates constraints and limits.From the regression resultsthat independent directors of bank,government and executives background consultingeffect on improving the operating performance of listed companies, guangxibank,government and executives background of independent directors did not reflectsignificant promoting effect on enterprise performance.Instead,in the matchingcompanies,in addition to banking background of independent directors on performan-ce is not significant,the influence of government and executive background ofindependent directors are showed and enterprise performance is significantly positivecorrelation;This paper enriches the research path of independent director governance effect,widens the perspective of independent directors related research, at the same time,theresearch conclusions have a certain guiding significance in better hiring of theindependent directors of listed companies in two areas: the listed company shouldchoose the appropriate independent directors according to their own needs;Perfect theincentive mechanism of independent directors;Improve the corporate governancemechanism create a good external environment for better implementation of theindependent director system. Build communication platform of independent directors.of course,due to the author’s lack of knowledge and time limited,there are certainlimitations of this study,there are still many places need to be improved and perfected.