The purpose of the study was to explore the relationship between independent directors and information asymmetry during 2002 to 2012. Our country introduced the independent director system in 2002, and used it to enhance our corporate governance. So that the company's supervisory mechanisms could effectively be enhanced. The study used the relative quoted spread and relative effective spread as a proxy for information asymmetry and used discretionary accruals absolute value as a proxy for earnings management. The empirical results shown that when corporate had higher earnings management, information asymmetry would be higher. Corporate hired independent directors could effectively reduce the degree of information asymmetry. Display independent directors oversaw the company did have to play its function. Furthermore, the study also found that if corporate hired independent directors, usually would help to reduce information asymmetry by reduce earnings management.
