Author(s): Assaf Zaki Filfilan, Ahmed Zamzam, Nadia Elouaer
While previous studies have focused on an aggregated measure of corporate governance, we aim to provide a more comprehensive view of one of the most important determinants of corporate governance, namely board characteristics. We will focus on whether the value relevance of fair values is affected by board characteristics (i.e., board independence, size, gender diversity, audit committee). It seems that after the adoption of a new fair value accounting regulation, investors have higher trust in fair value estimates made by ï¬ürms with stronger boards. Saudi Arabia's context presents an interesting setting for addressing the ability of board characteristics to improve the value relevance of fair value measurements.