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Faculty & Research


The Importance of Directors’ Information Access: Evidence from Board Risk Reporting

Working Paper
The authors examine the antecedents and implications of directors’ access to internal information. Using proprietary data on board risk reporting practices, they document that boards receive more frequent and comprehensive internal risk information when more board directors are independent and when the board chair is a nonexecutive, which enables non-executive directors to have more influence on board meeting agendas and reporting. The authors further show that board risk reporting contributes to board effectiveness as it is negatively (positively) related to future firm risk (performance). These relations are more pronounced when analyst coverage complements internal risk reporting to complete directors’ information mosaic. These findings offer novel insights on the economic role of board reporting practices.

Assistant Professor of Accounting and Control

Assistant Professor of Accounting and Control