Purpose

This study investigates the effect of board independence on private information-based trading (PIBT) events. This study also examines the interaction effects of firm's disclosure quality and the statutory and demographic roles of independent directors and board diversity attributes, respectively, on the relationship between board independence and PIBT.

Design/methodology/approach

This study uses panel data of 811 non-financial public listed companies in Bursa Malaysia for the sample period 2009–2017. The dynamic general method of moments (DGMM) is used for the dynamic panel data estimation and to address the potential endogeneity problem.

Findings

The results show that board independence has a negative effect on PIBT and the effect could be strengthened by firm's disclosure quality, women independent directors and board gender diversity, but attenuated by CEO duality. The overall result suggests that apart from independent audit committee, the statutory and demographic attributes of independent directors and board diversity, and firm's disclosure quality are complementary to board independence in preventing persistent PIBT.

Originality/value

This study augments the existing corporate governance and information-based trading literature from the perspectives of firm's disclosure quality, and the statutory and demographic roles of independent directors and board diversity attributes, by examining their effects on the relationship between board independence and PIBT.

中文翻译：

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董事会独立性和私人信息交易：来自马来西亚的证据

目的

本研究调查了董事会独立性对私人信息交易 (PIBT) 事件的影响。本研究还分别考察了公司披露质量、独立董事的法定和人口角色以及董事会多元化属性对董事会独立性和 PIBT 之间关系的交互影响。

设计/方法/方法

本研究使用 2009 年至 2017 年样本期间马来西亚交易所 811 家非金融上市公司的面板数据。动态通用矩量法（DGMM）用于动态面板数据估计并解决潜在的内生性问题。

发现

结果表明，董事会独立性对 PIBT 有负面影响，该影响可能会因公司的披露质量、女性独立董事和董事会性别多元化而得到加强，但会因 CEO 双重身份而减弱。总体结果表明，除了独立审计委员会之外，独立董事的法定和人口特征、董事会多样性以及公司的披露质量与董事会独立性相辅相成，可以防止持续的 PIBT。

原创性/价值

本研究从公司的披露质量、独立董事的法定和人口角色以及董事会多元化属性的角度，通过检验它们对董事会独立性和 PIBT 之间关系的影响，扩充了现有的公司治理和基于信息的交易文献。