Journal of Financial and Quantitative Analysis Vol. 56 No. 1 2021
Does Board Independence Increase Firm Value? Evidence from Closed-End Funds
open access
Abstract
Researchers disagree about the impact of board independence on firm value. The disagreement generally stems from the endogenous nature of board appointments. I add new evidence to this discussion by using a sample of closed-end funds to document the value-enhancing effects of independent boards. Using cross-sectional, difference-in-differences, and instrumental variables techniques, I address these endogeneity concerns and find consistent evidence that board independence is associated with higher firm value.
- DOI
- 10.1017/s0022109019000929
- Volume
- 56
- Issue
- 1
- Pages
- 313-336
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref