Independent director reputation incentives and stock price informativeness

Sila, Vathunyoo; Gonzalez, Angelica; Hagendorff, Jens

doi:10.1016/j.jcorpfin.2017.09.018

Cited by 81 publications

(49 citation statements)

References 77 publications

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“…According to the existing research, the corporate governance factors influencing the stock price crash risk mainly include internal factors and external factors. Among them, internal governance factors involve senior management [24], the board of directors [25], major shareholders and institutional investors [26], and internal control information disclosure [13,27], etc., external factors-including securities analysts [28], media [29], religion [30] and institutional environment [31], etc.…”

Section: Literature Review and Research Hypothesismentioning

confidence: 99%

“…On the one hand, the independent director system requires independent directors to supervise management objectively and independently [46], and curb their bad news hoarding activities. Generally, the higher the proportion of independent directors, the higher the reputation incentives and the greater the supervisory role [25,47]. Academic independent directors mostly come from universities, scientific research institutions and other units.…”

Section: Csr Academic Independent Director and Stock Price Crash Riskmentioning

confidence: 99%

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Corporate Social Responsibility Disclosure and Stock Price Crash Risk: Evidence from China

Dai

Chao

2019

Sustainability

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We take Chinese A-share listed companies in years 2010–2015 as a sample to examine the relationship between Corporate Social Responsibility (CSR) information disclosure and stock price crash risk using the fixed effect model. The results show that: (1) There is an inverted U-shaped nonlinear relationship between CSR information disclosure and stock price crash risk. That is, as the CSR information disclosure level increases, the CSR information disclosure first aggravates and then reduces the stock price crash risk; (2) under different disclosure motives, there is a significant difference in the impact of CSR information disclosure on stock price crash risk. There is still an inverted U-shaped relationship between mandatory CSR information disclosure and stock price crash risk, but not for the semi-mandatory and voluntary disclosure; (3) the academic independent director has a positive adjustment effect on the relationship between CSR information disclosure and stock price crash risk, while the institutional investor has a negative adjustment effect on the relationship between CSR information disclosure and stock price crash risk. The research is of great significance for promoting the fulfillment of CSR, improving corporate governance and stabilizing the capital market.

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Section: Literature Review and Research Hypothesismentioning

confidence: 99%

Section: Csr Academic Independent Director and Stock Price Crash Riskmentioning

confidence: 99%

Corporate Social Responsibility Disclosure and Stock Price Crash Risk: Evidence from China

Dai

Chao

2019

Sustainability

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“…In the past decades, researchers have given particular attention to the effect of independent director reputation incentives. For example, Sila et al (2017) find that there is a positive link between independent director reputation incentives and firm transparency [21]. Nevertheless, few studies examine the effect of independent director reputation incentives on CSR.…”

Section: Introductionmentioning

confidence: 99%

“…Prior studies have found some factors that can affect independent directors' ability of protecting stakeholders, such as their social connections [29], their personal characteristics [28,30], their compensations [31], and so on. Given the important of reputation incentives, a growing number of studies have focused on the effect of independent director reputation incentives over the past decades [21]. Yet, no studies have examined how independent director reputation incentives affect CSR.…”

Section: Introductionmentioning

confidence: 99%

“…Finally, this paper is the first to study the effect of independent director reputation incentives in the China's context. To date, most studies on this topic have been conducted in the U.S. context [21], but the extent to which these findings and their explanations hold in emerging countries has been largely unexplored. The China market possesses characteristics similar to those of many emerging markets.…”

Section: Introductionmentioning

confidence: 99%

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The Effect of Independent Director Reputation Incentives on Corporate Social Responsibility: Evidence from China

Wang

2018

Sustainability

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This paper examines the effect of independent director reputation incentives on corporate social responsibility (CSR). Using an unbalanced panel of 3765 Chinese-listed firms between 2009 and 2014, this study suggests that independent director reputation incentives improve CSR. Furthermore, it is found that this effect is more pronounced in non-state-owned enterprises (non-SOEs) than in state-owned enterprises (SOEs). In addition, our results also show that the effect of independent director reputation incentives on CSR is moderated by firm size, and this effect is much stronger in relatively larger firms. Together, these results suggest that reputation is an effective mechanism that can motivate independent directors to fulfill their role of monitoring and advising CSR, especially in non-SOEs and relatively larger firms. We add new insights to the research on the topics of independent director system, protection of the stakeholders’ interests, and CSR enhancement.

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Cross‐shareholding networks and stock price synchronicity: Evidence from China

2020

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This article investigates the effect of cross‐shareholdings on stock price synchronicity, as a measure of price informativeness, of the listed firms in the Chinese stock market. We gauge firms' levels of cross‐shareholdings in terms of centrality in the cross‐shareholding network. It is confirmed that it is through a noise‐reducing process that cross‐shareholdings promotes price synchronicity and reduces price delay. More importantly, this effect on price informativeness is pronounced for large firms and in the periods of market downturns. Overall, our analyses provide insights into the relation between the ownership structure and price informativeness.

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Independent director reputation incentives and stock price informativeness

Cited by 81 publications

References 77 publications

Corporate Social Responsibility Disclosure and Stock Price Crash Risk: Evidence from China

Corporate Social Responsibility Disclosure and Stock Price Crash Risk: Evidence from China

The Effect of Independent Director Reputation Incentives on Corporate Social Responsibility: Evidence from China

Cross‐shareholding networks and stock price synchronicity: Evidence from China

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