The Effect of Board Independence on 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 2016
• Subjects: Corporate governance; board independence; management forecasts; analysts; information asymmetry; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1435; https://ink.library.smu.edu.sg/context/soa_research/article/2434/viewcontent/EffectBoardIndependenceInformation_Asymmetry_2015_pp.pdf
• Institution: Singapore Management University

Boards have an important role in ensuring that investors’ interests are protected. Our paper first examines whether the independence of a firm's board affects information asymmetry among investors. We provide evidence that greater board independence leads to lower information asymmetry. Next, w...