The Analysis of Independent Directors' Behavior Based on Game Theory and the Incentive Control

The establishment of effective incentive control mechanism for independent directors is the vital to independent director system in a public company to operate successfully in China. The paper, based on information economics and game theory,presents the relevant theoretical analysis and puts forward the corresponding measures to incite and control independent directors according to their main two missions, e.g., to protect the interests of small medium investors and improve the decisions of the board of directors in a public company.