Board Characteristics and Accounting Information Quality

This study empirically investigates the relationship between board characteristics and accounting information quality based on a sample of 153 firms listed on the Shenzhen Stock Exchange main board for the financial year ending in December 31, 2008. Accounting information quality is measured by information disclosure appraisal result released by Shenzhen Stock Exchange. The results suggest that firms are more likely to release high quality accounting information when boards include more independent directors. The results also indicate that firms with less board meeting frequency or higher compensation of directors are more likely to release high quality accounting information.