The Independence of Independent Directors:  Evidence from Board Voting Behavior

              Ye Kangtao^a, Zhu Jigao^b, Lu Zhengfei^c  and Zhang Ran^c
            (a: Renmin University of China; b: University of International Business and Economics; c: Peking University)

Abstract：Chinese listed firms are required to disclose the board voting results on management proposals. Using the unique data, we explore the independence of outside directors. We document that only 4% of firms have dissenting directors who vote against management proposals at least once, which is consistent with the claim by Mace (1986) that outside directors are not quite effective. Furthermore, we find that independent directors are more likely to vote against management proposals when firms perform poorly, and when independent directors have higher reputation, have financial or accounting background, and with a longer tenure. We further document that the firms with dissenting directors enjoy higher market value. Our findings suggest that independent directors become more effective during crises, and the monitoring by independent directors improve firm value.

Key Words： Independent Director; Board Independence; Board Voting; Firm Value
JEL Classification：G34，K22

             Theoretical Logic and Sinicization of the Consumption Function: A Survey of Literature
                                                          

    Zhu Xinkai and Luo Chen
     (School of Agricultural Economics and Rural Development, Renmin University of China)

Abstract：The consumption function theory is a most important theory in the western economics. Originated from the Marxist Political Economics, China's traditional consumption theory is different from the western at the very beginning. It was not until the 1990s did the consumption function become widely studied. During the past decade, in order to better achieve the expansion of consumer demands and the establishment of a virtuous national economic cycle, scholars have made an unprecedented breakthrough in the sinicization of the theory. This paper focuses on the consumption function, tries to reveal the internal logic of the theoretical development chronically, analyzes main problems and paradoxes when macro-studies are looking for micro-supports, and comes up with adjustments for sinicization. Based on the above literature review, the paper concludes with several points of the epistemology for China's consumer economics.
Key Words： Consumption Function; Theoretical Logic; Sinicization; Literature Review

JEL Classification：D91, D81, D11, D13, D03