Research on the Effectiveness of The System of Independent Directors of Listed Companies in China

Abstract

This paper selects the financial data of Chinese A-share listed companies from 2010 to 2020 as the research sample, and empirically tests the negative impact of the number of independent directors and their ratio on financial fraud behavior from the perspective of corporate financial fraud.The research results find that the number of independent directors and the ratio of independent directors are significantly and positively correlated with corporate financial fraud behavior, which indicates that independent directors have a significant impact on The results found that the number of independent directors and the proportion of independent directors are significantly and positively correlated with the financial fraud behavior of enterprises, indicating that the independent directors did not effectively promote the current corporate management reform.