Footnote:
In: Wu, K., Sorensen, S., & Sun, L. (2019). Board independence and information asymmetry: family firms vs non-family firms. Asian Review of Accounting
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 15, 2018 erstellt
Description:
This study investigates the role of independent board members in insider-controlled firms by examining the effectiveness of independent boards in reducing information asymmetry in family versus non-family firms. We show a negative relation between the proportion of independent directors and information asymmetry, proxied by trading volume, the bid-ask spread, and price volatility. We also find negative relation is more pronounced for a family firm versus a non-family firm. These results are robust after controlling for the endogenous choice of board members in various models. Our findings ease the concern that founding families may over-ride independent boards and exhibit opportunistic behavior