Accounting conservatism and board of director characteristics: An empirical analysis Academic Article uri icon


  • Using three different measures of conservatism, we document that (i) the percentage of inside directors is negatively related to conservatism, and (ii) the percentage of outside directors' shareholdings is positively related to conservatism. Our results hold after controlling for industry, firm size, leverage, growth opportunities, institutional ownership, inside director ownership, and unobservable firm characteristics that are stable over time. Overall, the evidence is consistent with accounting conservatism assisting directors in reducing agency costs of firms. 2007 Elsevier B.V. All rights reserved.

published proceedings


author list (cited authors)

  • Ahmed, A. S., & Duellman, S.

citation count

  • 502

complete list of authors

  • Ahmed, Anwer S||Duellman, Scott

publication date

  • January 2007