International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)


Board Characteristics and the Value Relevance of Fair Values - The Case of Saudi Arabia

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.

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