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Rahimah Mohamed Yunos, Malcolm Smith, and Zubaidah Ismail



This study seeks to examine the influence of board skill, multiple directorships (BSHIP), and tenure of independent directors on accounting conservatism, as measured by asymmetric timeliness and accrual-based conservatism (CONACCR). Fixed-effect regression models were constructed on a sample of 2016 firm-year observations for asymmetric timeliness model and 2033 firm-year observations for CONACCR model, which covered from 2001 to 2007. The findings show that the degree of financial expertise on the board is positively associated with the recognition of bad news which is relative to good news into earnings. BSHIP appears to have no effect on conservatism. Independent directors who have longer tenure in the board of the firms are slower in recognizing bad news which is relative to good news into earnings. The study provides empirical evidence on the effectiveness of the board of directors, which will be an interest to the practitioner or regulators in reviewing the corporate governance regulations.


board skill, financial expertise, multiple directorships, tenure, conservatism

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