Board independence, litigation risk, and expense stickiness: Moderating role of economic policy

Huxing Li, Dongming Liu, Haoyu Tan, Yongqian Tu and Liang Zhao

International Review of Financial Analysis, 2024, vol. 96, issue PA

Abstract: This study examined the sample data of A-share listed companies in Shanghai and Shenzhen from 2011 to 2022 to explore the relationship between board independence, litigation risk, and expense stickiness. Findings indicate that board independence and litigation risk independently reduced corporate expense stickiness. The impact of board independence on the expense stickiness of firms varied with the degree of shareholding concentration. At a high equity concentration, board independence exhibited a strong inhibiting effect on expense stickiness. Economic policy uncertainty played a moderating role in the relationship between board independence and expense stickiness.

Keywords: Board independence; Litigation risk; Expense stickiness (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:96:y:2024:i:pa:s1057521924005805

DOI: 10.1016/j.irfa.2024.103648

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