Regulatory Pressure,Board Independence and the Nature of the Board of Directors:Evidence from Pre-Ipoed Companies
Exploiting the unique setting in the National Equities Exchange and Quotations market,and a PSM-DID research design,this study investigates the determinants and consequences of board independence of pre-IPO companies.Our findings reveal the potential regulatory pressure from IPO application is the driving factor for changes in board independence:Within 3 to 4 years after the start of IPO counseling,the board independence of these companies was significantly higher than that of those companies that are not applying for IPO,while before the IPO counseling and 3 to 4 years after the counseling,there was no significant difference in board independence between the two groups of companies.We further provide evi-dence that several firm characteristics that are better aligned with the requirements of IPO can strengthen the positive association between potential regulatory pressure and board independence.Additionally,we conduct analysis on the independent directors'voting,the relationship between board independence and IPO approval,and the value effect of independent directors in pre-IPO companies.Our study pro-vides important evidence for the operation of the independent director system in the pre-IPO stage of companies,which has theoretical and practical implications for the modernization of Chinese-style corporate governance.
万方数据
维普
