Impact of Board of Supervisor Capital on Validity of Monitoring

Abstract

The paper analyses the impact of the board of supervisors capital on validity of monitoring, which includes monitoring the company finance and the behavior of harming company benefit from directors and senior management based on resource independence theory and resource-based view. The members in board of supervisors have human capital or social capital that will reduce the harm behavior efficiently. Meanwhile increasing the width and depth in members of board of supervisors can strengthen validity of monitoring finance.