Institutional Environment,Reputation Of Independent Directors And Invasion Of Large Shareholders

The separation of ownership structure and management right makes the agent problem between managers and shareholders become the focus of corporate governance.However,in the 1990s,economists gradually found that the controlling shareholders were prevalent among the listed companies,The concentration of equity makes the control of enterprises and enterprises more closely,the major shareholders in the development of enterprise development strategy will be more prudent in the process,business risk will be reduced.However,as a listed company,the major shareholders can rely on their own advantages in the equity for their own personal interests,for example,the transfer of corporate profits assets,etc.,the interests of small and medium shareholders so damaged.The existing research suggests that the conflict between the major shareholder’s encroachment and the minority shareholders’ interests has become an important aspect of the corporate governance.The agency problem in the contemporary enterprise is no longer the conflict between the manager and the owner,but the controlling shareholder and the external investor The differences between the interests.Independent directors are one of the factors to improve corporate governance.In the more concentrated private listed companies,independent directors are considered as the main supervisors,and they shoulder the important mission of restricting the abuse of the rights of major shareholders and safeguarding the interests of small and medium shareholders.Unlike the owner and manager of the firm,the independent director does not have the shares and management rights of the enterprise.His personal income has nothing to do with the firm’s performance and receives a fixed allowance,so that it can not supervise and supervise the performance of the company through material incentives,But through the incentive and restraint of reputation can guide the behavior of independent directors to promote due diligence and impartial supervision.Most scholars believe that reputation as a personal intangible assets,with the role of signal transmission,the reputation of the existence of reduced transaction costs,is the embodiment of personal self-value,independent directors out of the pursuit and maintenance of reputation and responsible supervision,The probability of occurrence,Institutional environment is the basis of business management,the existing literature found that the institutional environment and corporate governance there is a positive relationship between.’The improvement of the institutional environment is not only beneficial to enhance the performance of enterprises,but also conducive to regulating the business owners of business behavior,limiting the interests of major shareholders of other enterprises to encroach on the interests of other investors.Unlike reputation,the system is a dominant contract,and all individuals in society must abide by the constraints of the system.Combing the relationship between the formal system and the reputation mechanism,is conducive to better strengthen the internal and external management level,enhance the competitiveness of enterprises.Therefore,the main content of the study is the independent directors reputation,institutional environment in the restrictions on the occupation of major shareholders of the respective roles and mutual relations.This paper mainly includes three parts and seven chapters.The first two chapters of the article explain the background and significance of the research,the main contents and structure of the article,and review the main contents of the existing research.The research laid the foundation of the theory and combed the existing research in the development of the Department,to find the full text of the focus and breakthrough.The third chapter to the sixth chapter is the empirical model analysis,in which the third chapter constructs the theoretical framework of the empirical research,and makes reasonable assumptions on the research content:the reputation of the independent director,the institutional environment and the large shareholder of the invasion was significantly different relationship The The fourth chapter is the data collection and pre-processing process,according to the main content of the study,this paper selected from 2005 to 2014 years 292 private listed companies as a sample,manually collect the sample data,based on the assumption of the establishment of multiple regression model.In this paper,Stata12.0 statistical analysis software is used to analyze the results of the regression analysis.According to the regression coefficients of each variable,the relationship between the reputation of the independent directors,the institutional environment and the encroachment is analyzed.Hypothesis.In the sixth chapter,based on the further study of the results obtained,the effect of the independent directors ’reputation and the institutional environment on the behavior of the major shareholders in the case of different ownership concentration is verified by the group regression.At the same time,the independent directors’ And the relationship between business performance.Chapter 7 is the conclusion and policy recommendations.The main findings of this paper are as follows:1.The independent directors with high reputation can restrict the occupation of large shareholders,and the reputation of independent directors is negatively correlated with the encroachment of large shareholders.Under the incentive of reputation,the independent board of directors will supervise and maintain the enterprises The interests of small shareholders.2.Institutional environment has a positive effect on the encroachment of large shareholders,the better the institutional environment,the higher the level of marketization,the more effective the big shareholder behavior is from external constraints.3.The independent directorship mechanism and the institutional environment for the synergies,and can not replace each other.3.The more restrictive the effect of independent directors on the encroachment of large shareholders,the more negative the negative correlation between institutional environment and encroachment.4.The relationship between the reputation of independent directors and corporate performance is positively related,the higher the reputation of independent directors,the more effective the role of counseling and supervision.