Independent Directors' Multiple Seats,Performance Behavior And Corporate Earnings Quality

Since the establishment of the independent director system in China,independent directors have been given important corporate governance roles.In view of the fact that the multiple seats of independent directors are becoming more and more common in recent years,whether “busy” independent directors can play an important role in modern corporate governance,this has begun to receive widespread attention in the theoretical and practical circles.In addition,under the circumstances that China's capital market is more and more developed,how to curb the earnings management behavior of listed companies has become an important issue in modern corporate governance.The CSRC also mentioned in the "Guiding Opinions on Establishing Independent Director System in Listed Companies" that at least one of the independent directors of a listed company is an accounting professional.This regulation aims to use the professional expertise of independent directors of accounting professions to curb the earnings management behavior of listed companies,thereby improving the earnings quality of listed companies.Therefore,it is of great theoretical and practical significance to examine the role of multiple seats,types and performance of independent directors with financial background in corporate governance.This paper takes the 2012-2017 China Shanghai-Shenzhen A-share listed companies as research samples,uses STATA software to carry out regression analysis on the samples,and combines the “experience ability hypothesis”,“reputation motivation hypothesis” and “energy hypothesis” to explore separately the relationship between multiple seats,part-time seat reappointed,part-time seat in the same industry,part-time seat with high reputation,part-time seat in different places of independent directors with financial background,performance behavior of independent directors with financial background and corporate earnings quality,as well as the intermediary effect of independent directors' performance behavior with financial background.The empirical results show that the more multiple seats of independent directors with financial background,the better the earnings quality of their companies,and the performance behavior of independent directors with financial background plays a certain intermediary role.When the independent directors with financial background are employed in the same industry,or are employed highly motivated by reputation,the earnings quality of their companies is relatively high,and the performance behavior of independent directors with financial background plays a certain intermediary role.When the independent directors with financial background are employed in different places,the earnings quality of their companies is relatively low,and the performance behavior of independent directors with financial background also plays a certain intermediary role.This paper not only enriches the research on the individual characteristics of independent directors and corporate governance in theory,but also provides a certain decision-making reference basis for the regulators to improve the supervision mechanism and the listed company to select independent directors.