An Empirical Study On The Relationship Between Independent Directors And Corporate Performance

The independent director system originated in the United States and it was introduced into China as an important corporate management system.Although a lot of researches have be done by scholars at home and abroad these years,there are no unified view about whether the independent director system worked.As the concentration of ownership of listed companies in China is higher,while the phenomenon that chairman of the board in charging the company management is more common,what result in the interests of small shareholders were infringed by the big shareholder.In this case,can independent directors also give full play to their due role?What corporate governance model is suitable for the independent director system survival and development in?This paper will focus on these aspects of the problem.This paper mainly studies the influence of independent director system on corporate performance under different corporate governance models.This paper first introduced the various factors that affect the performance of the company,and on this basis,there is a further analysis of whether the independent director system has works effectively.To study the effectiveness of a system,you first need to start to perform their functions.Then,the paper analyzes the basic functions of the independent directors,then makeing clear the concept of validity,and finally analyzing the relevant factors that affect the effectiveness of the independent directors system.On the basis of theoretical analysis,this paper chooses the constituent stocks of Shanghai and Shenzhen 300 as researching samples and then these data samples are divided into Agency,Deprivation and Mixed corporate governance model to validate the effectiveness of the independent director system.In the case of the robustness test,this paper analyzes the influence of the overseas working background of the independent directors on the effectiveness of the independent director system in the three different corporate governance model.This paper argues that there is no obvious linear correlation between independent director system and firm performance when the impact of corporate governance is ignored.After considering the corporate governance model,the agency model 3 and the agent model4 are proved suitable for the independent director system playing a role,but the other corporate governance model is not suitable for the independent director system.