Souther, M. E. (2019). Does board independence increase firm value? Evidence from Closed-End funds. Journal of Financial and Quantitative Analysis, 1-47.


Researchers disagree about the impact of board independence on firm value. The dis- agreement generally stems from the endogenous nature of board appointments. I add new evidence to this discussion by using a sample of closed-end funds to document the value- enhancing effects of independent boards. Using cross-sectional, difference-in-differences, and instrumental variables techniques, I address these endogeneity concerns and find con- sistent evidence that board independence is associated with higher firm value.