INDEPENDENT DIRECTORS AND FIRM VALUE: NEW EVIDENCE FROM THE 2023 REGULATORY REFORM IN CHINA
Abstract
This paper explores the “Measures for the Management of Independent Directors of Listed Companies” announced on August 4, 2023, for Chinese listed firms. We find that firms failing to meet the criteria in the Measures suffer losses in the stock market. The 2023 Measures exogenously increase the demand for qualified independent directors and incur high search costs for firms facing more labor market constraints.
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Copyright (c) 2024 Anqi Jiao, Ran Sun, Juntai Lu
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