Do Outside Directors Tell the Truth, the Whole Truth and Nothing but the Truth when They Resign

• Main Authors: BAR-HAVA, Keren, HUANG, Sterling Zhenrui, SEGAL, Benjamin, Segal, Dan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: outside directors; resignation; disagreement; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/818; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1817&context=soa_research
• Institution: Singapore Management University

This study examines the information content of the reasons for resignations by outside directors. Since directors are privy to private information about the firm, they may resign when they foresee future underperformance of the firm in order to reduce or eliminate damage to their reputation because...