Investigating the Impact of Board of Directors on Accounting Conservatism in Kuwait

摘要

This study aims to study the influence of boards of directors on the accounting conservatism of non-financial listed firms in Kuwait Stock Exchange (KSE). According to agency theory, accounting conservatism and boards of directors can be considered effective mechanisms for reducing agency conflicts, thereby protecting the interests of investors that used the financial information while also increasing firms' performance and value. This study sought to build a link between accounting conservatism and boards of directors by using a sample of 87 non-financial firms listed on the KSE at the end of 2019. The study used three independent variables (i.e., board size, board independence, and family directors) and found that none affected accounting conservatism. This study contributes to the literature by identifying the impact of boards of directors on accounting conservatism in Kuwait as no work has been done in this area before.