The study examines the relationship between Board Composition and Earnings Management. A set of listed Companies have been investigated to analyze the relationship for the year 2003 to 2007. Board Composition has been measured by Board independence, and Institutional ownership. Whereas earnings management has been quantified by discretionary accruals. Modified Cross Sectional Jones Model (1995)...

This paper investigates the relationship between firm value and board composition with consideration of the effects of D&O insurance: monitoring incentive and moral hazard. Based on three measurements of firm value, we find that (1) D&O insurance provides monitoring incentive for the board; (2) firm value is significantly related to board composition and D&O insurance; and (3) the function of D...

Corporate governance literature generally suggests that a company’s boards of directors may influence company performance. When the balance of power over strategic decisions and organisational outcomes favour the CEO the board may however have few possibilities to monitor managerial or company performance or influence strategic choices. This paper investigates how boards become activated and em...