An Empirical Study On Independent Directors With Official Work Experience

China's Government has maintained a high degree of concern to the relationship between politics and commerce.During the period of NPC &CPPCC in 2016,the key words such as "business and political contactions" "new government business relations" got lots of focus.These key words emphasis on contactions between business and political should be “Qin” and “Qing” like the relationship between gentlemen.Strict restrictions on the official background of independent director is an important methord for the government to maintain the political and business relations clear.The goverment issued files to strictly limite independent directors with official background,followed by the resignations of a large number of independent directors with official background in 2014.Independent directors with official background became a brief blooming Epiphyllum in Chinese company governance history,which declined rapidly and finally become history.The mind set of independent directors is monitoring and consulting,this paper in a certain extent is an interpretation to the "no official order".We want to find out whether independent directors with official background play a role to several certain micro dimension of a company,which beyond the explanation of the original role of independent directors.This paper use ndependent directors with officials background as explanatory variables,the data comes from 127 listed companies during 2010 to 2013.By using a random effects panel regression,we discussed the regression relationship between official background independent directors and actual tax rate,government subsidies,bank loans.Bank loans contain three aspects,the loan amount,loan term and loan cost.The regression results show that the official background independent directors can significantly reduce the actual tax rate,improve the obtained government grants and reduce the cost of bank loans.The conclusion in this paper is consistent with the related theory and literature review results,indicating the official background of independent directors' work as a special resource,and can indeed influence the several fields above in this paper.Based on the above research conclusion,although we affirmed the positive role of official background independent directors in business,which bring unfair gains for the enterprise,however,it cause the low efficiency of resources allocation from the view of social level.This is in the opposite direction with the advocate of the anti-corruption and the construction of the harmonious relationship between government and business.Therefore,the conclusion of this paper is interpretation of the "no official order",affirmed the necessary to limit this kind of independent directors.In addition,the conclusion of the article indicates that it should be strictly supervised on official background who served as independent or other enterprise interests referred such as chairman and CEO.The government should resolutely put an end to bartering behavior and establish a new relationship between government and business.The conclusion of this paper has large policy implications,besides that,it also play a role in the field of research.This paper not only pays attention to the analysis of the official background independent directors,a special certain group in board of directors,but also shows the analysis results from several micro dimensions of an enterprise.This paper filled the gaps in the field and provides a reference for the follow-up study.