Board Interlocked and Information Asymmetry

• Main Authors: Hui-Chen Yang, 楊惠珍
• Other Authors: Yi-Hsing Liao
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/hagehv

碩士 === 中原大學 === 會計研究所 === 107 === The purpose of the study was to examine the relationship between board interlocked and information asymmetry. Measure information asymmetry in its companies by bid-ask spread on the stock market. In the past, the literature has proved that the strengthening of corporate governance mechanism can help to reduce the problem of information asymmetry. I go further to see the system of supervisors established by the company. This study focused on the board of directors and the executive committee established by firms and proposed that the board interlocked can reduce the information asymmetry between firms and investors. The results showed that the board interlocked was significantly and negatively related to information asymmetry. This study further conducted sensitivity analysis to capture the relationship between board interlocked and information asymmetry by using the total number of firms interlocked through the directors of a firm and the number of interlocked firms that are in the same industry with the firm in question. The result revealed there exists a significantly and negatively relationship between board interlocked and information asymmetry.