Research On The Impact Of Remote Finance Independent Directors On The Quality Of Corporate Financial Reports

Focusing on the theme of "whether independent directors improve corporate governance",in-depth research has been carried out in experts and scholars at home and abroad,but few scholars have examined its impact from the perspective of the geographical characteristics of financial independent directors.In fact,the reputation mechanism of independent directors in our country is still not perfect,and many listed companies have begged to hire remote financial independent directors in different provinces to question the practice.As an external governance mechanism,financial independent directors have an impact in communicating with external auditors,supervising the opportunistic behavior of management and the dredging behavior of major shareholders,keeping the company's accounting policies stable,and thereby improving the quality of the company's financial reports.According to the information asymmetry theory and social network theory,based on different research hypotheses,scholars who study the supervising effect of independent directors' regional characteristics have reached targeted research conclusions.However,how does the geographical distance of the company's financial independent directors play a role in affecting the quality of the company's financial reports? In companies with different property rights,due to the different focus of principal-agent conflicts supervised by independent financial directors,are there any differences in the effectiveness of supervision?In view of this,based on principal-agent theory,information asymmetry theory and social network theory,this article attempts to answer the above questions from the perspective of independent financial directors.This article takes 2014-2018 China and Shenzhen A-share listed companies 'financial independent directors' daily work location and the company's registered location as explanatory variables.It examines the influence of the geographical distance on the quality of the company's financial reports,and clarifies the off-site finance.The independent directors supervise the mechanism of failure and analyze the first type of principal-agent conflicts that dominate the state-owned enterprises and the second type of principal-agent conflictsthat dominate the non-state-owned enterprises.Impact,and the moderating effect on the relationship between independent financial directors and the quality of the company's financial reports.The research analysis in this paper mainly draws the following conclusions:First,if a listed company has independent financial independent directors,the quality of the company's financial reports is poor.Second,according to the difference in the nature of property rights,the listed companies are divided into state-owned and private enterprises.The study found that the proportion of independent financial directors in state-owned enterprises is lower than that of private enterprises.Independent directors can take advantage of local information to better play a supervisory role,and the quality of financial reports of state-owned enterprises is generally higher than that of private enterprises.Third,the supervision failure of independent financial directors in different places mainly exists in state-owned enterprises,the geographical distance of financial independent directors in non-state-owned enterprises is negatively related to the quality of the company's financial reports,but it is not significant.