Do Retired Officials Of Independent Directors Play A Role?

Since 2013 the Central Organization Department issued under No. 18 is called a "further regulate party and government leaders in business part-time(tenure) views on the issue", the independent director of listed company officials set off the "left wave." However, in public for retired government officials employed by the company’s "revolving door" phenomenon continued to be suspicious, the state strictly limited retired officials as an independent director, the listed companies are still keen to hire, what is that? Fulfilling oversight, advisory functions, or play a role, using its own network relationships to provide enterprises with resource rent? In view of this, this paper from the company retired officials of independent directors to explore the characteristics of research, analysis and fulfillment companies hire independent director motivation retired officials and economic consequences for the functioning of enterprises.In this paper, the case study method, Sany Heavy Industry Co., Ltd. as a case study sample, from the independent directors to discuss political identity and political relations, analyze the performance of its functions, motivation and economic consequences. Mainly from the performance of monitoring and analysis of both consulting functions: oversight functions mainly from the independent directors present at the meeting, the dissent analysis, advisory functions, mainly from bank borrowings ratio, the actual payment of tax rates, government subsidies analysis; appointment economy the main consequence analysis appointment, share price performance and operating performance before and after departure.The study found that the supervisory role of retired officials formality background of independent directors, and virtually no oversight; independent director retired officials perform advisory functions, but in addition to fulfill an advisory function, the researchers also found that tax incentives for the company financial subsidies and other public resources, rent-seeking; compared with the general independent director to resign, officials lead independent director resigned after the announcement in the company’s value fell, causing a negative market reaction. And learn from the advanced experience in this study, based on the search for effective solutions, make constructive suggestions for improving hiring independent director system provides a theoretical basis.