The Research On The Correlation Between Independent Directors And The Quality Of Accounting Information

Independent directors system is the product of the mature capital markets; itmeans the independence of the board catches more and more attention in the practiceof corporate governance. Independent director system has achieved good results in theUnited States and Europe, so more and more countries begin to follow it. Chinaintroduces this system formally in2001, hoping the establishment of independentdirector system can play its role of supervision and recommendation, thus improvingthe management level of listed companies. People are concerned about whetherindependent directors fully played their role to help improve the quality of accountinginformation.On the basis of domestic and foreign scholars’ research, this thesis adopts themethods of empirical research and chooses the proportion of independent directors inboard members, education level of independent directors, remuneration level ofindependent directors and the proportion of accounting backgrounds independentdirectors to study. The quality of listed companies’ information disclosure judged byShenzhen stock exchange is made as the yardstick. The results of the study show thatthere is a significant positive correlation between the recommendation of independentdirectors and the accounting information quality. But there is no correlation betweenthe rest three variables and accounting information quality. It means that the effect ofindependent directors system doesn’t meet the original intention in China. There isstill a long way to go to explore how to fully play the role of independent directors.