All That Glitters is Not Gold! Independent Directors attributes and Earnings Quality: Beyond Formal Independence

نویسندگان

چکیده

Research Question/Issue This paper examines the effect of additional independent directors' attributes, beyond formal independence, on earnings management practices. Findings/Insights I find that being non-busy, having accounting expertise, and appointed by non-controlling shareholders are relevant attributes—beyond independence—in their monitoring task, among attributes have tested. Additionally, shows directors who possess such features simultaneously outclass all other directors—included touted effective formally directors—in mitigating activities. Theoretical/Academic Implications respond to calls for dismantling common wisdom board investigating factors leading better monitoring, showing not all-alike. With specific reference when controlling independence becomes uninfluential in constraining also show co-existence makes more relative mates sharing attributes. Practitioner/Policy Findings this work might be useful practitioners attempting design corporate governance mechanisms able monitor practices through may serve as a stimulus regulators re-thinking regulations composition structure.

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ژورنال

عنوان ژورنال: Corporate Governance: An International Review

سال: 2021

ISSN: ['1467-8683', '0964-8410']

DOI: https://doi.org/10.1111/corg.12380