Independent Directors,Accounting Quality And Market Performance

We take the Chinese stocks listed in the United States from 2004 to 2013 as the sample to find the impacts of independent directors’characteristics on the quality of accounting information and firm performance, by conducting an independent sample T test and multivariate linear regression.The results show that:There’s no significant difference between the listed companies and delist companies in terms of accounting quality, which means the accounting quality problem does not mainly cause the Chinese stocks delisted from the United States market.Independent directors with industry background will decrease the accounting quality. Independent directors with political connections help increase the accounting quality. A higher "Internal Multiple Role Rate" is associated with a poorer accounting quality. We don’t have sufficient evidence to demonstrate that the foreign independent directors (FIDs) can help improve the accounting quality. We don’t have sufficient evidence to prove there’s a relationship between the "External Multiple Role Rate" ant the accounting quality, either.Independent directors with political connections will decrease the market performance of the firm. A higher "External Multiple Role Rate" is associated with a better market performance. There is no sufficient evidence to prove that independent directors with industry and foreign background will help improve the market performance of the company. "Internal Multiple Role Rate" of independent directors has no effect on the firm performance.