Owusu, A., Kwabi, F., Owusu-Mensah, R. ORCID: 0000-0001-9748-9516 and Elamer, A.,
2022.
Lead independent director, managerial risk-taking and cost of debt: evidence from UK.
Journal of International Accounting, Auditing and Taxation.
ISSN 1061-9518
(Forthcoming)
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1756837_Owusu-Mensah.pdf - Post-print Restricted to Repository staff only Download (634kB) |
Abstract
We extend the existing literature on how the adoption of a lead independent director is related to corporate outcomes by documenting that the presence of a lead independent director on the board is significantly and negatively related to managerial risk-taking. The result is more pronounced for firms with a non-independent board chair. In a further analysis, we document that decreased managerial risk-taking leads to a reduction in cost of debt for firms with a lead independent director on the board. Overall, our results suggest that the adoption of a lead independent director is an effective governance mechanism when the board chair is not independent, which supports the motivation of the UK corporate governance code.
Item Type: | Journal article | ||||
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Publication Title: | Journal of International Accounting, Auditing and Taxation | ||||
Creators: | Owusu, A., Kwabi, F., Owusu-Mensah, R. and Elamer, A. | ||||
Publisher: | Elsevier | ||||
Date: | 3 November 2022 | ||||
ISSN: | 1061-9518 | ||||
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Divisions: | Schools > Nottingham Business School | ||||
Record created by: | Laura Ward | ||||
Date Added: | 05 May 2023 10:23 | ||||
Last Modified: | 05 May 2023 10:23 | ||||
URI: | https://irep.ntu.ac.uk/id/eprint/48883 |
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