Accounting conservatism and banking expertise on board of directors

Article

Nguyen, T. T., Duong, C., Nguyen, N. T. M. and Bui, H. Q. 2019. Accounting conservatism and banking expertise on board of directors. Review of Quantitative Finance and Accounting. 55, p. 501–539. https://doi.org/10.1007/s11156-019-00851-2
AuthorsNguyen, T. T., Duong, C., Nguyen, N. T. M. and Bui, H. Q.
Abstract

Previous studies show mixed evidence of the role of banking expertise on the board of directors on accounting conservatism. In this paper, we add to this growing literature by providing an innovative way to measure banking expertise based on life-time working history in banks of all individual directors on the board. We find that accounting conservatism is negatively affected by banking expertise on the board. Also, the results indicate that banking expertise on the board has a more pronounced impact on accounting conservatism when firms have high bankruptcy risk and when firms have high financial leverage. The evidence has some implications for boards of directors.

JournalReview of Quantitative Finance and Accounting
Journal citation55, p. 501–539
ISSN0924-865X
Year2019
PublisherSpringer
Accepted author manuscript
License
File Access Level
Anyone
Digital Object Identifier (DOI)https://doi.org/10.1007/s11156-019-00851-2
Web address (URL)https://doi.org/10.1007/s11156-019-00851-2
Publication dates
Online03 Nov 2019
Publication process dates
Accepted14 Oct 2019
Deposited01 Nov 2019
Copyright holder© 2019 Springer Science+Business Media, LLC, part of Springer Nature
Copyright informationThis is a post-peer-review, pre-copyedit version of an article published in Review of Quantitative Finance and Accounting. The final authenticated version is available online at: http://dx.doi.org/10.1007/s11156-019-00851-2.
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