Cuifeng Wu
ABSTRACT
The number of listed companies that defaulted on their bonds rose rapidly in recent years. Under the background of the sharp increase of bond defaults in China, this paper wants to study the influence of bond defaults on the independence of the board. The empirical results show that the relationship between the bond default events and the number of independent directors is significantly positive. This means that bond default will increase the number of independent directors in the board. The increasing number of new independent directors can improve the quality of the listed company's financial report, can optimize the governance structure and protect the company shareholders’ rights and interests.
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