| Under the Special Institutional Background of Our Country,the problem of corporate fraud on capital market has been focused all the time by the theorists and academics.Once the scandal is exposed,all stakeholders will sustain losses.Therefore,It has both theoretical and practical significance to explore how to reduce the risk of corporate fraud fundamentally and how to improve the level of corporate governance to prevent listed company from taking risks.Current research findings seldom study the relationship between independent network position and corporate fraud directly.By establishing a partial observable bivariate probit model,with selected data of non-finance listed companies in China A-share market from 2011·2017,this paper investigates the effectiveness of independent director's network upon the problem of corporate fraud.Further,this research places the relationship between effectiveness of independent director's and corporate fraud in different nature of ownership and institutional environment to compare effect result.The conclusion shows that independent director's network position has a better governance effect in terms of restraining corporate fraud in private enterprises.However,unlike the hypothesis,independent director's network position plays a more important role in developed areas.Distinguishing different types of violations,the empirical result reveals that independent director's network position excels in inhibiting information disclosure violations.Finally,this paper finds that over investigation is one of the function routes between independent director's network position and corporate fraud.Summarizing all the theoretical analysis and empirical results,it proposes some suggestions from reputation evaluation mechanism of independent directors?independent directors' working environment and continuing education of independent directors which can prove a useful reference for perfecting the institution of capital market. |
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