A comparative analysis of independent director appointments on stock price behaviour: an empirical investigation based on the Markov regime-switching model |
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| Authors: | Yung Chuan Lee Su-Lien Lu |
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| Affiliation: | 1. Department of Finance , Overseas Chinese University , Taichung , Taiwan coplend@ocu.edu.tw;3. Graduate Institute of Finance , National Pingtung University of Science and Technology , Pingtung , Taiwan |
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| Abstract: | In 2002, the Taiwanese government regulated that new companies should appoint independent directors for good corporate governance. The purpose of this article is to compare appointing independent directors' motivation of structural changes in stock behaviour. The empirical results showed that the companies with mandatory or voluntary independent director appointments significantly reduced both stock returns and risks over 2000–2006. |
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| Keywords: | independent directors Markov regime-switching model stock price behaviours |
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