Using the entrenchment view and shareholder optimization view, this study explores the determinants of board independence. According to the entrenchment view, this study predicts under three cases, (1) the divergence between the equity ownership level and the ultimate owner's control is higher, (2) the pledged shares of controlling owners are greater, and (3) the company is controlled by a family, that management tends to avoid being monitored, and thus the company prefers not to appoint independent directors. According to the shareholder optimization view, companies acquire more benefits from hiring more independent directors when they need capital for future growth or are required to do by institutional investors. Therefore, companies are more likely to hire more independent directors. The empirical results support the entrenchment view and show that when there is a higher divergence between the equity ownership level and the ultimate owner's control, or when the pledged shares of controlling owners are greater, the level of board independence will be lower. In addition, the more shares held by institutional investors, the higher the level of board independence will be.