Independence Of Independent Directors,Managerial Power And The Efficiency Of Corporate Governance

All along,the Western scholars based on the mature capital market for corporate governance mechanism are continuing to explore and research,has established a sound corporate governance theory.Due to different institutional background,China's market economic mechanism is not perfect,laws and regulations are not perfect,Western corporate governance theory,which to explain the corporate governance of Chinese enterprises is not fully applicable.How effective the governance of the independent directors system introduced from the Western corporate governance mechanism becomes an important issue of concern.It is of great significance to examine the influence of the independence of independent directors on the efficiency of corporate governance from the perspective of empirical evaluation."Separation of ownership and control”makes the management of the power of continuous improvement;state-owned enterprises in the presence of multiple principal-agent relationship,making the enterprise shareholders cannot be due diligence to supervise the management behavior.According to the theory of principal-agent,the separation of ownership and management right in modern enterprise makes the potential conflict of interest between shareholders and management.Management as "Economic man,must act?according to his own interests in the business decision-making.Then there is likely to be a managerial opportunistic behavior in the corporate governance process.In the past,the relationship between management and corporate governance is based on the theory of management power and the theory of rent-seeking,focusing on the influence of management power on its own pay,and less about the influence of management power on independent directors in corporate governance The Therefore,based on the theory of principal-agent and the perspective of senior management echelon,this paper explores the influence of the independence of independent directors on the efficiency of corporate governance,and then explores how the influence of management authority on the independence of independent directors in corporate governance The management power plays a regulatory role in the relationship between the independence of independent directors and the efficiency of corporate governance.The independent directors,management power,corporate governance theory is linked,and the empirical method is used to test the internal relations between the three,which provides theoretical and practical guidance for the role of independent directors and management power in corporate governance.Based on the literature combing and theoretical analysis,this paper chooses Chines listed firms as the initial research sample from 2010 to 2015 in China.Based on the theory of management,this paper analyzes the influence of independent directors on the efficiency of corporate governance.Based on the theory of management power and the senior management echelon,this paper analyzes how management uses power and how to use it.Influence the role of independent directors in corporate governance mechanism.Then,on the basis of theoretical analysis,this paper constructs the model to carry on the empirical test.The empirical results show that:First of all,from the principal-agent theory,the establishment of independent director system can reduce the cost of agency and maintain the long-term interests of legal persons to maximize.In this paper,the independence of independent directors is reflected in the reputation of independent directors,the proportion of independent directors' industry expertise and the proportion of independent directors.The proportion of independent directors' reputation is the proportion of independent directors acting as directors in other companies.The independent directors of the higher reputation,independent directors in order to maintain their own reputation,will constrain their own behavior,to strengthen their role in the corporate governance process;independent directors of industry expertise refers to the independent directors of industry expertise such as R&D,finance,and other expertise in the role of governance companies,through the use of their own industry expertise,effective corporate governance,thereby enhancing corporate governance efficiency;improve the proportion of independent directors in the board,will increase the independent directors in the board of directors,and thus strengthen the power of independent directors in the corporate governance mechanism.The results show that the higher the independence of independent directors,the higher the efficiency of corporate governance.Second,the size of management power will affect the degree of independence of independent directors on corporate governance efficiency.When the higher the management power,the relationship between the independence of independent directors and the efficiency of corporate governance is weaker,that is,the negative relationship between the independence of management and the efficiency of corporate governance.That is,in the corporate governance mechanism,the management of the power of the independent directors of the corporate governance role.From the research results,the empirical analysis results confirm the hypothesis of this paper,on the basis of the empirical results,but also for the future corporate governance mechanism made a few suggestions to improve the independent director system,improve corporate governance efficiency and supervision and management that power.