LAUSR

ABSTRACT This article investigates the impact of the current anti-corruption campaign on the connection between independent directors with political background (IDPBs) and preferential bank loans of Chinese listed companies. The primary findings of this article are as follows. First, there is a significantly positive relationship between IDPBs and companies’ ratios of bank loans. Second, the connection between IDPBs and firms’ bank loan ratios is negatively affected by the anti-corruption campaign. Last, the stock price of companies with IDPBs fell surrounding the enactment of the Opinion on Further Standardizing the Party and Government Leading Cadres Working（Full Time or Part Time）in Enterprises (the Opinion).