Name
Busy boards and managerial obfuscation
Date & Time
Tuesday, July 7, 2026, 8:55 AM - 9:20 AM
Description
This study investigates the association between board busyness and managerial obfuscations identified through the linguistic complexity of 10-K reports. Using a U.S. sample spanning 2000 to 2023 and comprising 51,067 firm-year observations, we find that busy directors are associated with higher managerial obfuscations. Our results persist across diverse specifications in which we adopt different measures for busy directors, and managerial obfuscations, and the inclusion of firm fixed effects. The main findings also remain robust when subjected to further analyses using the lead-lag regression, generalized method of moments, entropy balancing, and propensity score matching. Our channel analyses show that CEO duality analyst coverage, and competition intensity do not drive the main relationship between busy directors and managerial obfuscations. Our findings suggest important implications for investors and policymakers.
Aitzaz Ahsan Alias Sarang
Keywords
129
Theme
CORPORATE GOVERNANCE
Author 1
Aitzaz Ahsan Alias Sarang
Author 2
Asad Ali Rind
Author 3
Irfan Haider Shakri
Author 4
Rizwan Mushtaq