Proceedings of the 2025 6th International Conference on Management Science and Engineering Management (ICMSEM 2025)

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Excess Compensation of Independent Directors and Protection of Small and Medium sized Investors

Authors
Wenjie Jin1, *
1School of Business, Sichuan University, Chengdu, China
*Corresponding author. Email: 992067280@qq.com
Corresponding Author
Wenjie Jin
Available Online 16 September 2025.
DOI
10.2991/978-94-6463-845-5_119How to use a DOI?
Keywords
Independent director; Corporate governance; Large shareholder embezzlement
Abstract

This article takes Chinese A-share listed companies from 2014 to 2023 as a sample to explore the impact of excessive compensation of independent directors on the protection of small and medium-sized investors. Research has found that excessive compensation for independent directors significantly promotes the embezzlement behavior of major shareholders by weakening supervisory independence and exacerbating agency costs, supporting the collusion effect hypothesis. Heterogeneity analysis shows that this effect is more prominent in companies with low information transparency and weak marketization. The study uses multidimensional robustness testing to reveal the negative governance effects of excess compensation as a medium of interest exchange, providing empirical evidence for optimizing the independent director compensation mechanism and improving the protection system for small and medium-sized investors.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 6th International Conference on Management Science and Engineering Management (ICMSEM 2025)
Series
Atlantis Highlights in Economics, Business and Management
Publication Date
16 September 2025
ISBN
978-94-6463-845-5
ISSN
2667-1271
DOI
10.2991/978-94-6463-845-5_119How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Wenjie Jin
PY  - 2025
DA  - 2025/09/16
TI  - Excess Compensation of Independent Directors and Protection of Small and Medium sized Investors
BT  - Proceedings of the 2025 6th International Conference on Management Science and Engineering Management (ICMSEM 2025)
PB  - Atlantis Press
SP  - 1214
EP  - 1224
SN  - 2667-1271
UR  - https://doi.org/10.2991/978-94-6463-845-5_119
DO  - 10.2991/978-94-6463-845-5_119
ID  - Jin2025
ER  -