Analysis of independent director’s behaviour in China’s listed companies based on evolutionary game model

The behaviours of independent directors and managers of Chinapsilas listed companies is analysed based on evolutionary game theory. The results show that only under the condition that the incentive is greater than the cost of supervision for independent directors, such optimal evolutionary stable strategy as independent directors choose ldquosuperviserdquo, enterprise managers choose ldquonot cheatrdquo may exist. The incentive mechanism is not sound, and independent status can not be guaranteed. It may be the main reasons for independent directorspsila nonfeasance in Chinapsilas listed companies.