Polytechnic University of Valencia Congress, CARMA 2020 - 3rd International Conference on Advanced Research Methods and Analytics

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Big Data in Corporate Governance decision
Inmaculada Bel Oms, Alfredo Juan Grau Grau

Last modified: 30-06-2020

Abstract


Progress in Big Data in recent years has grown exponentially, which has
allowed the detection and processing of a large amount of data. Until recently,
this fact was unattainable by the lack of mechanization of the corporate
governance reports. This paper investigates the relationship between
corporate governance decisions affect the indebtedness policies of 1,956
industrial companies listed in Europe and the USA over the period 2016–2018
(5,868 observations). To measure corporate governance decisions, we use
detailed information on the expertise of audit committees, the proportion of
independent directors, board structures and women's presence on corporate
boards. Our findings, which are based on a static panel data analysis, show
that there is a strong negative relationship between Audit Committees
expertise and indebtedness level in European and North American companies.
There are also evidence that European and American companies with a one-
tier board structure and Audit Committees expertise are less likely to have
lower level of indebtedness. Our results shed new light on corporate
governance in relation to the experience of audit committees and the influence
of their characteristics on indebtedness policy.


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