Financial disclosure and the Board: A case for non-independent directors

Yuri Biondi, Pierpaolo Giannoccolo and Antoine Reberioux

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: In listed companies, the Board of directors has ultimate responsibility for information disclosure. The conventional wisdom is that director independence is an essential factor in improving the quality of that disclosure. In a sense, this approach subordinates expertise to independence. We argue that effective certification may require firm-specific expertise, in particular for intangible-intensive business models. However, this latter form of expertise is negatively related to independence as it is commonly measured and evaluated. Accordingly, there exists an optimal share of independent directors for each company, related to the level of intangible resources.

JEL-codes: D80 G30 M21 M41 (search for similar items in EconPapers)
Date: 2010-01
New Economics Papers: this item is included in nep-acc, nep-bec and nep-cfn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:689

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