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| Research on Due Diligence Mechanism of Independent Director: from the Work-Role Perspective |
| HAO Yunhong1,LIN Xianyun1,WANG Shuxian1 |
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Abstract The simple and procedural workflow and serious information asymmetry lead to independent directors’ intentional or unintentional departure from the creed of “good faith and diligent work”. Helping independent directors to perform their due diligence to achieve the desired value becomes a very noteworthy theoretical focus and a practical problem. This article has redefined independent directors based on the perspective of work-roles, outlined the microscopic mechanism of its due diligence process, and empirically studied the impact on business performance based on work roles. The study has found a clear role for independent directors, either stressing the coordination and supervision or professional quality, which can reduce the sense of role confusion and conflict, and can also help to improve business performance. Furthermore, the supervision and the professional quality of independent directors can impact a firm’s performance through the confusion of roles. Therefore, enhancing the professional quality of the independent directors, the level of coordination and supervision of consciousness can reduce its obligation ignorance and help to improve performance.
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Received: 22 April 2013
Published: 15 July 2013
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Corresponding Authors:
HAO Yunhong
E-mail: haoyh@mail.zjgsu.edu.cn
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2013, Vol. 
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