Is information on boards useful for investors' appraisal of firms' value?

Abstract

This article examines if investors rely on certain information about board characteristics appearing in circulars, to appraise a firm’s market value. The board traits considered in the study are independence, size, ratio of equity remuneration to total director remuneration, board ownership and director tenure. Our results show that the ratio of equity remuneration to total remuneration and director tenure are positively connected with firm market capitalization. Director ownership, however, appears to be negatively correlated with firm valuation.