A Study of Independent Directors and Corporate Financial Risk

Abstract

In the field of corporate finance research, the research on corporate financial risk has received a high degree of attention. Modern corporate financial management requires corporate managers to break through the shackles of traditional concepts and establish a correct risk concept: dare to face risks, challenge them, and master them. This paper proposes four hypotheses for the relationship between the characteristics of independent directors and corporate financial risk: there is a negative correlation between the average age of independent directors and corporate financial risk, and there is a negative correlation between independent directors' meeting attendance and corporate financial risk. There is a negative correlation between the relationship, male proportion of independent directors and corporate financial risk, and there is a negative correlation between independent directors' educational background and corporate financial risk.