The Influence Of The Financial Background Independent Directors On The Quality Of Accounting

As we all known, in order to prevent principal-agent problems and "insider control" problem, perfect the corporate governance structure, promote the quality of accounting information been raised, and make sure the benefit of the small and medium-sized investors and potential investors to be protected, the independent director system is established.Until now, it is still controversial that whether the system can play its proper role.Previous studies mostly focused on the main board market. But the essay chooses the GEM listed companies as the research object. And the method of normative research and empirical research are adopted in the paper. First of all, some theory related on the quality of accounting information is analyzed, for example, the principal theory, the stakeholder theory, the human capital theory and the signaling theory. Then three hypotheses which are based on the characteristics of financial background independent directors are put forward.1.The ratio of financial background independent directors has a significant effect on quality of accounting information;2.The independent directors with financial background of senior accountant title has a significant effect on quality of accounting information;3.The non-academic financial background independent directors are helpful to improve the quality of accounting information.The data is based on GEM listed companies empirical evidence during 2011-2013. The results for examination and assessment of the shenzhen stock exchange are regarded as the quality of accounting information. The control variables are the shareholding which belongs to the first big shareholder, the proportion of the independent directors, asset-liability ratio and Return on equity(diluted). And the explanatory variables are the senior accountant title pragmatic and the proportion of financial independent directors. This article analyzes the correlation between the dependent variables and the three characteristics of independent directors with the method of descriptive analysis, correlation analysis and binary Logistic regression analysisThe results show that the ratio of the independent directors who financial background has no effect on the quality of accounting information;The non-academic financial background independent directors are helpless to improve the quality of accounting information; But the independent directors with financial background of senior accountant title has a significant effect on quality of accounting information. So the system of the financial background independent directors needs to be improved. So in order to make a contribution to make full use of the system of the financial background independent directors the essay puts forward some relevant policy recommendations.