The Relationship between the Characteristics of Independent Directors and Supervisors and Firm Performance

This thesis investigates the impacts of the quality and characteristics of independent directors and supervisors on the firm performance. The results show that companies hiring more professional, independent and reputationable independent directors and supervisors can improve operating performance, market value and financial health. This thesis also discovers that companies aiming to enhance operating performance should hire independent directors and supervisors who have been the partners of big 4 audit firms; companies aiming to enhance market value should hire independent directors and supervisors who are accounting or financial experts; companies aiming to improve financial health, innovation, or selling capacity should hire independent directors and supervisors who are professors. Finally, this thesis indicates that the above mentioned results are still significant in the same direction when companies are small and median entities, family firms or duality CEO and Chairman as one role, which are regarded as worse corporate governmance. Our empirical results might provide useful implications for companies to hire appropriate independent directors and supervisors.