The Study On The Situation Of The Independent Director System Of Our Country

Using the independent directors' resignation as entry points, this paper studies the situation of the independent director system of our country from the angle that the reaction of the stock market under the background of the independent directors' resignation wave. Mainly by using event study, this paper empirically analyzes the stock market reaction of the independent directors' resignation wave in listed companies. Researches show that the stock market reaction caused by the independent directors' resignation wave is significantly negative. It can be seen that, at present, independent directors with party and government leaders background do play a certain role for listed companies to increase market value in our country; and that compared with state holding listed companies, it is more significant when independent directors resign in privately controlled listed companies. It can be seen that independent directors with party and government leaders background play a greater role for privately controlled listed companies; Especially it is more significant when independent directors, with the identity of party and government leading cadres at and above vice provincial and ministerial-level, resign in regions where the institutional environment is poor. It can be seen that regions, where the institutional environment is poor, provides favorable conditions for the role of independent directors, with the identity of party and government leading cadres at and above vice provincial and ministerial-level. That is to say, the situation of the independent director system of our country reflected in main conclusions is that independent directors with party and government leaders background mainly help listed companies increase market value by providing resources, not supervising administrative authorities; and private enterprises seek more actively help from them to strive for development; independent directors, with the identity of party and government leading cadres at and above vice provincial and ministerial-level, play a role more easily in regions where the institutional environment is poor. The results lay theoretical foundation for perfecting the independent director system and tightening supervision over party and government leading cadres in our country.