Research On The Effect Of The Official Independent Director Reform To The Financing Cost Based On The Nature Of Equity

Domestic and foreign scholars have conducted a lot of research on the influence of political connections on listed companies.Early research focused on the influence of high-level political connections on listed companies.These research results have aroused the attention of the society and the public,to a certain extent,the information disclosure of listed companies has been improved,and this has led the listed companies to make the establishment of political association more concealed.In order to successfully carry out rent-seeking in order to maintain their own preferential treatment,listed companies shift their ways of seeking rent from hiring senior management to hiring independent directors who are not noticeable.With the resignation of independent directors,the “political business revolving door” that has been criticized has begun a curtain call.Through empirical research,it was confirmed that this official's reform of independent directors has indeed achieved certain results: First,the reform of official independent directors has increased the debt financing costs of listed companies;secondly,the reform of official independent directors has reduced the cost of equity financing of listed companies;and finally,officials The influence of independent director reform on private enterprises is higher than that of state-owned enterprises.The above conclusions indicate that this official's independent director reform has significant thinking about eliminating discriminatory treatment of debt financing costs between politically-linked listed companies and non-politically-linked listed companies,further promoting social equity.The reduction in the cost of equity financing means that investors' expectations for the future of listed companies will be improved,which will be conducive to the survival of the fittest through the use of market methods and ensure the long-term development of high-quality listed companies.Based on the above research results,management and policy recommendations were proposed from the perspective of the listed company and the regulatory agency.