Research On The Influence Of Independent Directors Of Banks On Corporate Debt Financing

In 2001,the Securities Regulatory Commission issued the Guiding Opinions on Establishing Independent Director System in Listed Companies.Since then,China's Independent Director System has been formally established.The promulgation of this system shows the important position of independent directors in corporate governance.It has been more than ten years since the introduction of the independent director system,but there are still some controversies about the role,background and governance effect of independent directors,which need to be further studied.China's capital market construction is not yet mature,bank loans are still the main way for listed companies to carry out debt financing,but most companies are still facing financing difficulties and expensive financing problems.This paper finds that independent directors with banking background can alleviate and improve financing problems.This is due to the fact that the industry of independent directors with banking background and their expertise are related to credit.As the supervisor of enterprises,independent directors can supervise the accurate and timely disclosure of information by listed companies from the perspective of bank loan requirements.At the same time,it can also provide professional guidance and consultation for debt financing of listed companies,and establish the relationship between banks and enterprises,alleviate the information asymmetry between the two sides,and improve the level of debt financing of enterprises.Based on the principal-agent theory,information asymmetry theory,social network theory and resource dependence theory,this paper takes the A-share listed companies from 2008 to 2017 as samples to study the impact of independent directors in the banking background on the borrowing rate,debt maturity structure and debt financing cost of enterprises.Firstly,it is found that independent directors with bank background can increase the bank borrowing rate of enterprises;secondly,it is found that independent directors with bank background can improve the debt maturity structure of enterprises;finally,it is found that independent directors with bank background can reduce the debt financing cost of listed companies,and further research shows that independent directors with bank background can reduce the debt financing cost of listed companies.In the case of more serious information asymmetry between non-state-owned enterprises and audit of non-"four big" firms,independent directors of bank background have greater impact on debt financing.This paper studies the role of independent directors in corporate governance from the perspective of independent director system.By analyzing the impact of independent directors on corporate debt financing,this paper provides a reference for improving corporate debt financing,provides a new perspective for investors to observe enterprises from the perspective of corporate governance,and also provides a new path for banks to grant loans and assess corporate risk.