The Impact of Independent Directors' Proportion on the Risk-Taking Ability of Listed Companies
Year: 2024
Type: article
Abstract: In recent years, with the increasing uncertainty of the global economic environment and the increasing complexity of external risks faced by enterprises, the importance of corporate governance structure has become increasingly prominent. As the core component of corporate governance, independent directors play a key role in ensuring the stable operation of the company due to their independence and professionalism. This paper discusses the impact of independent directors on corporate risk bearing capacity, aiming to analyze the key role of independent directors in corporate governance and their specific role in risk management. Through regression analysis and empirical analysis, we find that independent directors can significantly improve the company's risk identification and management ability by enhancing information transparency, strengthening supervision mechanism and providing professional advice. The results show that companies with more independent directors demonstrate greater risk resilience in the face of external shocks. To provide theoretical and empirical support for the sustainable development of the company, some suggestions on the optimization of corporate governance structure and risk management practice are put forward.
Author: Zimu Zhang
Institution: Capital University of Economics and Business
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4405818578