Board Interlocks and Financial Statement Comparability
Date Issued
2016
Date
2016
Author(s)
Chang, Chia-An
Abstract
The objective of this research is to investigate the relationship of board interlocks and financial statement comparability (hereafter comparability). Director network through board interlocking has the advantages of information transfer and knowledge spillover, which in turn can enhance comparability among firms. Using a sample of Taiwanese listed firms over years 2007-2012, we find that board interlock is positively associated with comparability. In addition, comparability increases when the interlocking director has financial expertise. However, we find no evidence that audit committee member interlock is associated with comparability, probability due to the small sample of firms with audit committees. Finally, the additional tests confirm that the main results are robust to correction of potential self-selection problems, controlling for earnings management, and excluding financial firms.
Subjects
social networks
director networks
board interlocks
financial statement comparability
Type
thesis
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ntu-105-R03722003-1.pdf
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