The Impact of Independent Directors' Proportion on the Risk-Taking Ability of Listed Companies

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.

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Publication Details

Journal
Advances in Economics Management and Political Sciences
Published
2024-12-26
DOI
https://doi.org/10.54254/2754-1169/2024.ga18930
Primary Topic
Impact of AI and Big Data on Business and Society
Type
article
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article

The Impact of Independent Directors' Proportion on the Risk-Taking Ability of Listed Companies

Zimu Zhang
Advances in Economics Management and Political Sciences
Impact of AI and Big Data on Business and Society
article

The Impact of Independent Directors' Proportion on the Risk-Taking Ability of Listed Companies

Zimu Zhang
article en

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.

Advances in Economics Management and Political SciencesVol. 140(1)
Capital University of Economics and Business (CN)
Openalex Percentile: Top 70%
Impact of AI and Big Data on Business and Society
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The Impact of Independent Directors' Proportion on the Risk-Taking Ability of Listed Companies — Zimu Zhang · Advances in Economics Management and Political Sciences (2024) | TGRS Research Map | TGRS