The Effect of Board Independence on the Information Environment and Information Asymmetry

• Main Authors: GOH, Beng Wee, LEE, Jimmy, NG, Jeffrey, OW YONG, Kevin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: Corporate governance; board independence; earnings quality; management forecasts; analysts; information asymmetry; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/933; http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1267508
• Institution: Singapore Management University

Our paper examines how the independence of a firm’s board affects its information environment (in terms of earnings quality, management forecast frequency, and analyst coverage) and information asymmetry among investors. We show that greater board independence leads to higher earnings quality, great...