Influence Of Independent Director Characteristics On Agent Cost Of Private Holding Company

After the company's management rights and ownership are separated,the owners and managers have agency costs due to the asymmetric information.In order to safeguard the interests of the company's owners,the introduction of independent directors in the board of directors,the company's decision-making,supervision and so on.In the fast development of the economy,the agency problem has become more and more prominent,and the listed companies pay more and more attention to the agency problem.The introduction of independent director system can solve the agency problem appeared in the operation and management of the company to some extent,so as to improve the corporate governance structure.All walks of life more generally believe that the two functions of independent directors,on the one hand,independent directors can supervise the management of the company,on the other hand,independent directors can use their own experience and expertise to give objective and independent decision-making,enhance the company's Performance.From foreign studies,independent directors are generally senior executives of other companies or professionals in a field of expertise,which is recognized by society for such people.Therefore,the individual characteristics of independent directors on how the cost of agency is a concern.Since the introduction of the system of independent directors,both foreign and domestic scholars focus on the relationship between the characteristics of independent directors and agency costs,and the research results are not the same.As a new supporting point of economic development,private listed companies in China also have the agency problem.How to reduce the agency cost is the central part of corporate governance.In particular,it is easy for a family company to make large shareholders encroach on the interests of small shareholders,which leads to an increase in agency costs.Then,in the private holding listed company,whether the independent director characteristic has the influence to the agent cost,if the influence,how will affect the agent cost.This paper hopes to provide some help for the management mechanism of private holding listed company,improving the allocation of company resources and the healthy development of the company by studying the influence of independent director on agency cost.After reading a great deal of relevant literature about the independent directors and agency costs,this paper reviews and analyzes the research results of the predecessors,which is supported by the theories of agency cost theory,information asymmetry theory,separation of ownership and resource dependence theory,Put forward the hypothesis of this article.In order to study how the characteristics of independent directors of privately controlled listed companies affect the agency costs,a regression model is constructed based on the data of GEM-listed privately controlled listed companies in China from 2011 to 2015.The empirical test verifies the impact of the characteristics of independent directors of privately controlled listed companies on agency costs.The results show that: the higher the proportion of independent directors,the lower the agency cost of the company;the independent background of overseas directors,the impact of salary on agency costs is not significant;independent director education and agency costs are negatively correlated.According to the empirical results of this article,the following suggestions are put forward: The Company can appropriately raise the proportion of independent directors;the independent directors of the Company should pay attention to combining the development of the domestic economy;restrict the responsibility and functions of independent directors;pay attention to the cultivation of highly educated talents,At the same time,we must also emphasize the improvement of the ability of independent directors.