Heterogeneity Of Independent Directors And Chinese Business Empirical Study Of Bank Performance

The independent director system is an important measure to improve the governance mechanism of commercial banks listed in China’s A-share market.It can effectively inhibit the damage to the interests of minority shareholders due to the lack of internal control and supervision mechanism,as well as the concentration of equity.At the same time,it can also form an effective supervision and restraint effect on the major shareholders.Less than 20 years since China’s independent director system,governments and regulators at all levels have expressed confidence and determination in the role of independent directors in commercial banks listed in the A-share market.Moreover,the independent director system is still constantly revised and improved.The impact of independent directors on bank performance has always been the focus of academic research.As the study progressed,the results varied due to inconsistent selected samples and methods.This paper aims to study the correlation between independent directors and bank performance to help the company more reasonably choose independent directors,so as to better play the role of independent directors and improve bank performance.This paper first introduces the background and significance,research content and method,research innovation and deficiencies,and then analyzes the previous research and theory,lays the foundation for subsequent research,then explains the correlation theory between independent directors and commercial bank performance,on the basis of the sample company source,variable selection principle and data selection and source,then analyzes the previous data,give full play to the role of independent directors to improve the performance of commercial banks.The conclusion of this paper is that the proportion of independent directors and commercial bank performance,and age,salary,social relationship and diligence all have significant positive relations with the performance of commercial bank performance.The age and salary of independent directors should be increased to a reasonable extent,more independent directors with social relations should be retained,and a certain degree of diligence maintained.It is expected that this paper can provide a theoretical basis for the future research of scholars,and can help commercial banks to choose independent directors with real talents.