A Study On The Effectiveness Of Independent Director System In China

The independent director system was born in the United States in the 1940 s.Independent director system as a perfect corporate governance of a system of innovation,in the world has been widely recognized and promoted.The independent director system has been formally implemented in China since 2001,and has gone through 15 years of practice.The GEM market has introduced an independent director system since its formal commencement.Has also practiced 7 years later.GEM market from its beginning to be concerned about the establishment,because the growth rate of GEM listed companies higher performance to improve faster.So for the GEM listed companies corporate governance and internal control requirements higher.The independent director system is an important part of corporate governance and plays an important role in the operation and development of the company.Independent director system and the GEM market are mutually reinforcing.In this paper,through the study of the relationship between the characteristics of independent directors in GEM listed companies and the performance of listed companies on the GEM,the validity of the independent director system of listed companies is obtained.Not only has theoretical significance,there is a strong practical significance.Based on the theory of independent director system,this paper defines the definition of independent director,the definition of independent director system and the definition of corporate performance.By studying the development process of the independent director system,and elaborating the mechanism and mechanism of the independent director system from the aspects of the characteristics and functions of the independent director system and the requirements of the independent director system and its function.In this paper,the data of the 2010-2015 companies listed on the Growth Enterprise Market of China before December 31,2010 are the sample to reflect the return on net assets of the Company as explanatory variables,the ratio of independent directors,the average remuneration of independent directors,The average age of directors,the average degree of independent directors,the number of independent directors as the explanatory variables,the number of boards,the number of board of supervisors,the total assets of the logarithm,asset liability ratio as a control variable,the establishment of panel data estimation model.This paper analyzes the effectiveness of the independent director system of the GEM and obtains its influence on the listed companies on the GEM.Finally,according to the conclusion of the independent director system to improve the policy recommendations.