The Opening Of High-speed Railway And The Appointment Of Independent Directors In Strange Land

Geographical distance has a two-way effect on independent directors’ participation in corporate governance.Since independent directors in strange land are far away from the place where they work for a long time,the "relationship effect" can be avoided,and they are more independent than local independent directors,thus putting forward more objective and accurate opinions.At the same time,independent directors in strange land have local social resources and a better understanding of the local market environment,which can help enterprises improve the efficiency of merger and acquisition and operation in strange places and play a powerful advisory role.However,due to the existence of geographical distance,it is common for independent directors in strange land to be absent from meetings.Moreover,independent directors in strange land are far away from the social circle of the management,and it is difficult for them to obtain the "soft information" within the enterprise,so they cannot make objective judgments about the enterprise’s operating conditions,leading to the situation of "ineffective supervision".The construction of high-speed railway can alleviate the adverse impact of geographical distance on independent directors.The rapid development of High-speed railway in China has brought tremendous changes to the traffic pattern.The operating mileage of highspeed railway is growing rapidly,and the proportion of high-speed railway passenger volume in railway passenger transport is constantly increasing.From "four horizontal and four vertical"to "eight horizontal and eight vertical",the construction of China’s high-speed railway network has basically taken shape.High-speed railway construction,compress the distance of time and space,reduce the cost of long distance alone dong to attend the meeting and the degree of information asymmetry,reduce the long distance alone dong to attend meeting,improve the long distance alone dong supervision function,at the same time high iron opening will promote the talent and capital flow to open city,improve the urban external to the attraction of the independent directors,and the high-speed opening will accelerate enterprise market scale out.With the increase of operation in different places,the demand of enterprises to hire independent directors in strange land to improve the efficiency of operation in strange places increases.In this thesis,the proportion of independent directors in different places and the number of independent directors in different places of listed companies in this city were used to measure the employment of independent directors in different places.A multi-period DID model was established to analyze the impact of high-speed railway construction on the employment of independent directors in different places.PSM-DID and placebo tests were conducted on the regression results.The research results of this thesis show that the opening of high-speed railway can increase the recruitment of independent directors in different places of listed companies,increase the proportion and number of independent directors in different places,and promote the improvement of market value of enterprises by reducing the absence times of independent directors in different places and increasing the rate of dissent.Finally,there is heterogeneity in the influence of high-speed railway construction on independent directors in different places.The influence of high-speed railway construction is greater in areas with a higher degree of marketization than in areas with a lower degree of marketization,in other cities than in cities where universities are concentrated,and in non-state-owned enterprises than in state-owned enterprises.According to the empirical research results,this thesis puts forward four suggestions:first,enterprises should make full use of the advantages brought by the opening of high-speed rail to improve their own development;Second,state-owned enterprises need to establish a more market-oriented system,improve the enterprise compensation system,improve talent attraction;Third,independent directors in strange land can take advantage of the convenient transportation brought by high-speed rail to obtain more information about enterprise operation,reduce information asymmetry and give full play to the functions of independent directors.Fourth,regulatory authorities should encourage listed companies to hire more independent directors from other places to reduce the impact of geographical proximity.