“…Endogeneity is significantly reduced by relying on an external regulatory shock (Papangkorn et al , 2020). Several recent studies in the literature exploit this exogenous shock as a quasi-natural experiment to explore the effects of board independence on various corporate outcomes, strategies and policies such as director characteristics, director costs, chief executive officer (CEO) compensation, CEO turnover, managerial ownership, corporate risk-taking, innovation productivity, external audit quality, CEO power, corporate social responsibility (CSR), executive risk-taking incentives, CSR inequality and CEO general managerial skills (Engel et al , 2007; Leuz et al , 2008; Piotroski and Srinivasan, 2008; Chhaochharia and Grinstein, 2009; Guthrie et al , 2012; Kamar et al , 2009; Linck et al , 2009; Guo et al , 2015; Jiraporn and Nimmanunta, 2018; Jiraporn and Lee, 2018; Jiraporn et al , 2018a; Jiraporn et al , 2018b; Jiraporn et al , 2016; Chintrakarn et al , 2020; Ongsakul et al , 2020a; Ongsakul and Jiraporn, 2019; Chatjuthamard and Jiraporn, 2021). Therefore, this is a widely used empirical technique in the literature.…”