The Effects of Board Independence on Busy Directors and Firm Value: Evidence from Regulatory Changes in Sweden.
Research Question/Issue: This paper examines the impact of changes in board independence on the market valuation of Swedish firms. I exploit an exogenous change to the rules of corporate governance in 2005, which requires large firms to have majority independent boards, as a quasi‐experimental setting.Research Findings/Insights: I use a regression discontinuity design and a difference‐in‐differenc