An Empirical Study On The Independence Of Independent Directors Of Listed Securities Companies In China

Since China officially introduced the US independent director system in 2001,there has been a dispute between the theoretical and practical circles on whether it can effectively link with the traditional corporate governance structure of China.The current practice of corporate governance in China shows that the independent director system has a certain positive effect in improving company performance and suppressing company violations,but it has lots of problems exposed,the most prominent is its independence.Before conducting an empirical analysis of the independence of independent directors of listed securities companies in China,this paper explores the theoretical basis,functional value and different legislative models of independent directors.At the same time,it sorts out the substantive connotation and judgment basis of independence.Subsequent research lays the relevant theoretical foundation.Subsequently,this paper takes 30 A-share listed securities companies listed on the Shanghai and Shenzhen Stock Exchanges before June 15,2018 and their 125 independent directors as research samples,which are dependent on independent directors such as the company's shareholding structure.Institutional basis,to the status of independent directors such as gender,age and professional,and the performance of independent directors such as the frequency of attending board meetings,consider the independence of independent directors.The study found that the independence of independent directors of listed securities companies in China has not yet achieved the expected results.There are some more serious practical problems: the relationship between independent directors and major shareholders is too “intimate”;the phenomenon of “aging” of independent directors is more obvious;The professional background of directors lacks diversity;the enthusiasm of independent directors for performance is not high;the information disclosure of independent directors is insufficient.Based on the theoretical research on the independence of independent directors,this paper proposes several suggestions to improve the independence of independent directors,including: improving the mechanism of independent directors;limiting the proportion of independent directors;and expanding the profession of independent directors.Scope;improve the incentive mechanism for independent directors;regulate the information disclosure of independent directors.