Board independence protects firms from corporate misconduct

The more a company’s board is independent from management, the less likely it will become entangled in corporate misconduct, according to new findings, from a meta-analysis of 135 studies, published in The Journal of Management. The site of independence also matters. Independence on the audit committee particularly shelters firms from misconduct, researchers found. At the same time, accepted levels of corruption in countries where firms are located can overpower the effects of board independence on misconduct.